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Income Tax - Highlights / Catch Notes

Home Highlights January 2019 Year 2019 This

A mere fall in the GP Rate could only be a ground for making ...

Income Tax

January 22, 2019

A mere fall in the GP Rate could only be a ground for making further in-depth inquiries but could not be by themselves a ground for rejection of books of account since in terms of statutory provisions of Section 145(3), the books could be rejected only in specified circumstances.

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  2. Rejection of books of accounts - G.P. estimation - ITAT restricted the net profit rate at 5.5% of contract receipts on the ground of consistency - order of ITAT sustained - HC

  3. Trading addition – rejection of books of accounts and application of higher G.P. rate – even after the rejection of books of account, no trading addition is required to...

  4. Estimation of income - Rate of Gross profit (GP) - rejection of books of account - Since the average of past history of GP declared by the assessee is considered as a...

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  6. Rejection of books of accounts - Estimation of income @ 2% of gross sales – mere selling of goods at low margin cannot be made the reason for rejection of books of accounts - AT

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  8. Rejection of books of accounts - Fall in GP - variation in Power (Electricity) Consumption - assessee has given cogent explanation for the fall in G.P. as well as...

  9. Addition in gross profit rate – Addition cannot be made on pure conjectures – In case Assessing Officer had doubts over book results counter verifications and other...

  10. Addition on account of fall in GP - The AO has not invoked section 145(3) in its terms - Therefore, fall in G.P. rate cannot be made a reason for involving section 145(3) - AT

 

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