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TMI Blog2018 (7) TMI 2137X X X X Extracts X X X X X X X X Extracts X X X X ..... the learned A. O under the facts and in the circumstances of the appellant's case. 3. The learned CIT (A) ought to have appreciated that the appellant has maintained the books of accounts which are audited u/s.44AB of the Act and produced before the learned A.O. in course of assessment proceedings and no defects have been found by the learned A.O. for rejecting the income reported by the appellant based the books of accounts maintained and consequently, the direction of the learned CIT (A) to estimate the income at 12.61% deserves to be vacated. 02. Brief facts are, the case of the assessee was selected for scrutiny assessment. Notice was issued, in response to which assessee filed the return of income on 30.09.2009 declaring a total in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iled an appeal before the CIT (A). 03. Before the CIT (A) the assessee submitted that the AO should have considered the GP on actual sales basis. Further it was the case that assessee was maintaining proper books of account and it was even audited. Therefore the GP declared by the assessee should be accepted. It was further submitted that the assessee that no mistake was pointed out by the AO despite the fact that the accounts were duly audited. However the CIT (A) was not totally convinced and therefore, instead of 20%, applied 12.61% as declared by the assessee in A. Y 2008-09. Being aggrieved, the assessee is in appeal before us. 04. The learned AR before us submitted that the GP addition based on the chart was incorrect and the lower ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... O estimated the income based on the information obtained from KSBCL authorities disclosing the percentage of profit on sale fixed by the Karnataka government. It is not the case of the AO that the books were not properly maintained. Not even a word has been whispered by the AO that the books were not in accordance with the method of accounting, or were incorrect / incomplete. In our view, the laws commands us to set aside the assessment made on the basis of estimation, if the AO made the estimation without rejecting the books of account. In the matter of Anil Kumar (supra), the Hon'ble jurisdictional High Court has held as under : 11. In so far as the estimation of gross profit made by the Assessing Officer modified by the Commissioner of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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