9911796707
TMI Blog2014 (5) TMI 387X X X X Extracts X X X X X X X X Extracts X X X X ..... rected against the order of the CIT(A)-III, Hyderabad dated 11th December, 2012 for A.Y. 2009-10. 2. The grievance of the assessee is with regard to estimation of income on the reason of low gross profit declared by the assessee without rejecting books of account. The assessee also raised one more ground that the assessee is entitled for deduction u/s. 80C and 80D of Income-tax Act, 1961. 3. Bri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... chers were also defective. In other words, the books of account of the assessee did not provide proper details of the financial affairs of the assessee. It is a settled law that when appropriate details are not coming out of the books of the assessee, the Assessing Officer is within his rights to reject the books and estimate the net profit. Accordingly, the CIT(A) upheld the rejection of books in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ubled in the last two years. The CIT(A) observed that the AO has applied his mind and estimated the gross profit from the assessee's own GPs of earlier years through the process of average income. Accordingly, he found no infirmity in the calculation and the estimation made by the AO and sustained the order of the Assessing Officer. 6. We have heard both the parties and perused the material o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... properly vouched and also assessee has not given proper explanation for low gross profit. Considering this, the AO adopted the gross profit at 8.63% on an average. In our opinion, estimation of income on the basis of gross profit in this case is not proper. The AO should have compared the net profit rate of previous years for the discrepancies noticed in the books of account of the assessee. Cons ..... X X X X Extracts X X X X X X X X Extracts X X X X
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