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2016 (10) TMI 889 - ITAT AHMEDABADRejection of books of account - addition on low GP ratio - Held that:- The undisputed fact is that the only reason for lower GP by ₹ 10,10,213/- was due to overstated closing work in progress in FY 2007-08 i.e. Asst. year 2008-09 due to wrong estimate taken by the assessee. We are of the view that purpose of assessment is to assess the correct income of the assessee for the year. If there is a mistake in the preceding year then that needs to be corrected. One cannot take a plea to take a set off of excess income shown in the preceding year against the income in the current year. Further if we calculate GP for this year by correctly taking working in progress as reduced by ₹ 10,10,213/- then we will be able to reach to the correct GP and the resultant figure is what the ld. CIT(A) has sustained. Therefore, we are of the view that ld. CIT(A) has rightly sustained this amount of ₹ 10,10,213/- as the assessee was having all possible ways to rectify its mistake in the preceding FY by revising the return, correcting the financial statement and getting it duly certified by the auditors. We, therefore find no reason to interfere with the order of ld. CIT(A). We uphold the same. The grounds raised by the assessee are dismissed.
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