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2019 (7) TMI 1049 - HC - Income TaxRejection of books of accounts u/s 145 - Estimating the turnover on the basis of information received from the Excise Department - taxing entire suppressed sale as income - Assessee is engaged in liquor business - ITAT affirmed with modification by applying net profit of 2.7% on the estimated sales - HELD THAT:- The findings arrived at by the Tribunal are finding of facts. And as to proposed substantial question as to whether in view of the facts as regard to defects of the sales unsupported by day to day shop wise register of stock and sales, the assessing officer was not justified in estimating the turnover on the basis of information received from the Excise Department by rejecting books of accounts under section 145 (3) of the Act, 1961 and taxing entire suppressed sale as income, but only the net profit part could have been taxed as income. We perceive that a Division of the High Court in CIT Vs. Balchand Ajit Kumar [2003 (4) TMI 76 - MADHYA PRADESH HIGH COURT] has held that the total sales cannot be regarded as the profit of the assessee. - Decided against revenue
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