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2010 (4) TMI 268 - HC - Income TaxRejection of books of account – The Tribunal in the impugned order has upheld the opinion expressed by the CIT (Appeals) for rejection of books of account and the application of rate of 10% of the gross receipts in order to compute income subject to allowances. The Tribunal has rejected the arguments of the assessee/appellant that the rate of 10% adopted by the CIT (Appeals) was on higher side. It is pertinent to mention that the Assessing Officer has applied a rate of 12% which has been scaled down by the CIT (Appeals) to 10% with a further allowance for expenditure on account of salary paid to partners and depreciation – Held that: - view taken by the Tribunal does not warrant interference because for rate of 10% with further allowance of salary to partners and depreciation is absolutely reasonable in the facts and circumstances of the case especially when the books of account belonging to the assessee-appellant have been rejected. It has not been shown that the rate of 10% has been applied arbitrarily and could not have applied.
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