Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2017 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (12) TMI 1250 - AT - Income TaxAddition invoking provisions of Section 145(3) - rejection of books of accounts - G.P. estimation - Held that:- This is a fact that the assessee was not maintaining quality wise details of the commodities traded, therefore, it shall not be possible to verify the correctness of the valuation of the closing stock. Therefore, the Bench is of the view that the books of account were rightly rejected by invoking the provisions of Section 145(3) of the Act. Further the Assessing Officer made the addition of ₹ 3,04,903/- lacs and the ld. CIT(A) restricted it to ₹ 1,51,811/- lacs. After considering both the sides and the various other aspects of the case including the increase in the sales turnover by 3.5 times in the year under consideration in comparison to immediate preceding year, the estimate of G.P. at ₹ 1,51,811/- lacs is justified, therefore, the Bench uphold the order of the ld. CIT(A) on this ground. Accordingly, grounds No. 2 and 3 are dismissed. Disallowance of shops expenses, telephone expenses and low household withdrawals - Held that:- Since, the addition on account of estimating of gross profit and rejection of books of account has been sustained, therefore, in view of the various decisions of the Hon’ble Jurisdictional High Court on this issue, no specific additions out of expenses debited in P&L account can be sustained. Therefore, the same are directed to be deleted.
|