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2012 (4) TMI 750 - ITAT AMRITSARRejection of Books of Accounts u/s 145(3) - Estimation of Net Profit - Fair Estimation u/s 44AD - AO opined that the books of account of the assessee are not reliable, accordingly, rejected the same and calculated the income of the assessee at 8% of the total receipts. CIT(A) upheld the action of AO on the issue of rejection of books of accounts. Further, on the basis of income assessed in previous assessment year estimated the net profit rate of 5% - HELD THAT:- AO has not given any reasonable explanation while applying 8% net profit rate on the assessee’s gross receipts for the assessment year. The income assessed in the previous year in assessee’s case was apparently 3.6% of its net receipts. But in the present assessment year, the AO has pointed out various defects in the assessment order. The Ld. CIT(A) considering all the defects pointed out by the AO and finally, validly and reasonably determined the net profit rate at 5% after allowing depreciation and interest to the partners on the assessee’s turnover. CIT(A)'s order upheld - Revenue Appeal Dismissed. Carry Forward of Losses - Assessee has filed original return on due date but has filed revised return of loss after due date. Thus, loss was not carry forward u/s 139(1) - HELD THAT:- Revised return was filed by the assessee after due date, thus he is not entitled for any carried forward losses - Decision against Assessee.
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