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2023 (3) TMI 976 - AT - Income TaxRejection of books of accounts - NP Estimation - addition @ 1% of total sales and purchase turnover on account of net profit - As per AO business should be considered as non-genuine and existing only on paper for the purpose of providing entries - CIT-A deleted the addition - HELD THAT:- The AO has wrongly rejected of books of account, when assessing officer in his remand report has accepted about first three creditors, as there is no transaction with these three creditors during this year. As no question about the genuineness is raised by the assessing officer about the purchases from these three creditors. CIT(A) held that the estimation of addition of Rs. 2.06 Crore is not justified. Before, us the revenue has failed to bring contrary fact or evidence that the assessee made any such transaction with the first three creditors, which is otherwise accepted by AO in his remand report. Further the books of accounts of the assessee was accepted by the assessing officer in preceding and subsequent years. When the assessing officer accepted books result prepared on similar accounting standard, without specifying the criteria prescribed under section 145(3) - AO without giving his finding that the assessee was really engaged or indulging in providing entry, or the transaction shown by the assessee are circular transaction, compared the assessee with entry provider company and estimated commissions income. AO not even examined the bank statement of the assessee. No finding about the expenses claimed, if any, was given. The assessing officer estimated income on the purchases as well as on sales, which is unjustified. No infirmity or illegality in the order passed by the ld. CIT(A) which we affirm. In the result, all the grounds of appeal which is in the form of narrative, is dismissed.
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