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2018 (1) TMI 392 - AT - Income TaxRejection of books of accounts - invocation of section 145 - estimation of G.P. - Held that:- Past history of the assessee is the best guide to accept/reject the book result of the assessee. The Assessing Officer had not brought on record any positive evidence to enhance the gross profit for making additions. The G.P. is better than earlier year. The assessee is purchasing raw material in kilograms and the output is in pieces. Thus, there is no possible way to make coordination between input and output. In such a situation, the gross profit is the proper way to arrive at comparative book results. Therefore, considering all the facts and circumstances, the Bench finds that the ld. CIT(A) was not justified in confirming the addition, therefore, the same is deleted. Assessee’s appeal is allowed. Lump sum disallowance made on account of various expenses debited in the P&L account - Held that:- After hearing both the sides on this issue, the Bench is of the view that sustaining the addition of ₹ 50,000/- is on higher side, therefore, in the interest of justice, equity and fairness, the disallowance of ₹ 25,000/- shall be reasonable. Hence addition up to 25,000/- is sustained and balance is deleted. - Decided partly in favour of assessee
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