Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2021 (8) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (8) TMI 794 - AT - Income TaxRejection of books of accounts - Estimation of income - Addition by adopting net profit rate of 4.5% before depreciation on the gross receipts of transportation business - HELD THAT:- Since the entire activity has resulted in negligible income and even the amount received for transport work has also not generated any profit then this explanation of the assessee cannot be accepted for doing the trading activity of bricks and sand without any income. It is pertinent to note that after rejection of books of accounts the income of the assessee was required to be estimated on some reasonable basis. The assessee has also not brought on record any past history of net profit declared by the assessee as well as any comparable rate to contradict the net profit rate applied by the Assessing Officer at 1%. Accordingly, in the facts and circumstances of the case, when the assessee has not produced any material or facts to dispute the reasonableness of the net profit applied by the Assessing Officer @ 1% after rejection of books of accounts then this ground of the assessee's appeal is de void of any merit. appeal of the assessee is partly allowed.
|