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2017 (5) TMI 1522 - ITAT JAIPURN.P. determination - rejection of books of accounts - enhancement by CIT-A - Held that:- Enhancement made by the ld. CIT(A), which, in terms of NP rate comes to 11.58% is also unjustified. It is also noted that the AO has not provided any basis of applying 11.50%. He neither referred past history nor any comparable case. Considering the totality of facts & circumstances therefore, we are satisfied that the results declared by the assessee of this year at NP rate of 11% (subject to interest & depreciation) is justified and the addition made by the AO of ₹ 12,15,176/- and also the enhancement of ₹ 1,84,824/- made by the ld. CIT(A), totaling to ₹ 14 Lacs, was not fully justified. Since we have sustained the rejection of books of account and to plug the leakage of Revenue , we sustain addition of ₹ 2.00 lacs only. Thus ground of appeal no. 2 of the assessee is partly allowed. Depreciation on vehicles and depreciation on mobiles - Held that:- We hold that once the books of account are rejected and income is estimated then there is no further scope for any addition out of various expenses debit in profit and loss account. Therefore, we find no merit in the order of the ld. CIT(A) which is not justified in confirming the disallowance
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