Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2017 (8) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (8) TMI 326 - AT - Income TaxEstimate the profit @ 5% of the gross receipts excluding service tax - rejection of books of accounts - A.O noted that no documentary evidence in respect of liabilities under various heads including wages, service tax, etc. - Held that:- Estimate of profit @ 5% appears to be on the higher side. We find merit in the above argument of the ld. AR. It is an admitted fact that in the subsequent A.Ys, the A.O has not rejected the books results and has made nominal additions on account of various expenses being unverifiable in nature. Therefore, adoption of 5% N.P. rate on gross receipts for the impugned A.Y appears to be on the higher side. At the same time, it is also a fact that despite repeated opportunities given by the A.O, the assessee has not produced books of accounts. We are of the considered opinion that adoption of 3% net profit on the gross receipts excluding service tax will meet the ends of justice. It may be pertinent to mention here that this rate of estimated profit is only for this year and cannot be taken as a precedent for other years. Grounds raised by the assessee are accordingly partly allowed.
|