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2022 (3) TMI 1179 - AT - Income TaxEstimation of net profit - Rejection of books of accounts - HELD THAT:- It is an undisputed fact that assessee did not produce the books of accounts and bill vouchers before the AO and in such a situation, AO had no other option but to estimate the profit of the assessee. As in the show cause notice, AO asked the assessee to show casue as to why the profits be not estimated @ 8% of the gross receipts but however the AO finally estimated the profits @ 15% of the gross receipts. We find that no opportunity was given to the assessee for explaining his stand with respect to the estimation of profit @ 15% of the gross receipts. AO was not justified in estimating the profit @15% in the gross receipt. Before us, AR has submitted that the estimation of profits @ 8% of gross receipts as specified in show-cause notice by AO would be acceptable to assessee. In such a situation, we direct the AO to estimate the profits on the basis of 8% gross receipt as per the show-cause notice issued by him to the assessee. We thus direct the AO accordingly. Thus the ground of the assessee is partly allowed.
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