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2018 (2) TMI 1578 - AT - Income TaxAssessment proceeding u/s.147 read with 144 - Addition u/s.69 - rejected of books of accounts - failure of the assessee to reconcile the difference of cash balance in the bank account as per books of account and as per the bank statement - Held that:- AO made assessment u/s.143(3) by passing the order on 23.12.2011 by rejecting the book results of the assessee and estimating the income by applying rate of 8% on the gross contract receipts of ₹ 49, 10, 212/- and estimated the income at ₹ 3, 92, 816/-. Thereafter the AO passed an order u/s.147/144 on 11.02.2015 making an addition of ₹ 1, 00, 000/- u/s.69 on account of difference between the amount shown in the bank account maintained with Allahabad Bank and the amount shown in the books of accounts of assessee. On appeal, the CIT(A) confirmed the action of AO. As the original assessment u/s.143(3) was made by the AO by rejecting the books of accounts of the assessee and estimating the income of the assessee at 8% of the gross contract receipt of ₹ 49, 10, 212/-. It is trite law that once the books of accounts of the assessee are rejected, the same cannot be relied for making addition u/s.69 - Decided in favour of assessee.
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