9911796707
TMI Blog2025 (5) TMI 29X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee challenged assessment order dated 24.12.2018, whereby its total income was computed at Rs. 93,48,489/-after addition of Rs. 91,19,932/-was made under section 145 of the Act. 3. The addition came to be made as the Assessing Officer was not satisfied about the correctness of the accounts of the assessee, especially, when the assessee failed to produce cash book, bill vouchers and a number of expenses incurred and paid through cash modes could not be verified certain payments having been made through self made vouchers. 4. While applying provisions of section 145(3) of the Act, the Assessing Officer disallowed 10% of the expenses claimed by the assesee, and made the addition noticed above. 5. That is how, matter reached Ld. CIT(A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the case are that a survey action u/s. 133A of the Act was carried out at the business premises of the assessee. As per the AST data available with the department, the assessee failed to comply with section 139 of the Act for the year under consideration, despite the fact that the assessee's total business receipt was Rs. 7,96,67,680/-. In view of this figure under the head "business" and non-filing of return, a notice u/s. 148 of the Act was issued vide dated 26.03.2018. In response thereto, the assessee filed a return on 25.04.2018 declaring total income of Rs. 1, 49,170/-, i.e. 0.187% of the Gross Receipts. It was observed by the AO that despite the fact that the accounts of the assessee were liable to tax audit u/s. 44AB of the Act, n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1.52%. Here, it is pertinent to mention that the accounts of this year were not duly audited. Hence credibility is a concern and despite the fact that the assessee is a company and under obligation to file the return whatever may be the figure of turnover, still it opted not to file the return. Considering these facts, certainly the addition @ 10% made by the AO is not justified, but, at the same time, the assessee is also under obligation to reconcile the gap in the results declared for the current year and need to explain the failure to get the accounts audited. Conclusion 12. In totality of the facts mentioned above, we deem it fit to restrict the addition to 1.52% of the turnover declared and accept last year's declared by the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X
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