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TMI Blog2014 (5) TMI 847X X X X Extracts X X X X X X X X Extracts X X X X ..... is adoption of GP margin at 25% - neither the assessee has justified his claim of profit and at the same time found to have manipulated the wages register which amounts to filing of inaccurate particulars and tampering with the profit nor the Revenue has brought any cogent material evidence on record to justify the adoption of GP rate of 25% - there was no choice but to make a fair estimate of the profit – the AO is directed to restrict the adhoc addition of Rs. 20,00,000 – Decided partly in favour of Assessee. - I.T.A. No. 2598/Mum/2012 - - - Dated:- 30-4-2014 - Shri D. Manmohan And Shri N. K. Billaiya, AM,JJ. For the Appellant : Shri Pradip Kedia For the Respondent : Shri Manish Kumar Singh ORDER Per N. K. Billa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r. 3.1. After considering the report, the AO concluded that the stamps which were affixed on the wages register are not at all in existence during the financial year 2007-08 during which the wages were paid to the labourers. The AO proceeded to examine the books of account in the light of the provisions of Sec. 145 of the Act. The AO finally concluded that he was not satisfied with the correctness or completeness of the accounts of the assessee as the assessee s books of account do not give a full and fair picture of true income. The AO rejected the books of account of the assessee invoking the provisions of Sec 145(3) of the Act. The AO noticed that the assessee has shown gross profit at the rate of 10,85%. The AO went on to estimate th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e much lower in this line of the business added to this, the wages are not verifiable. At the same time, the AO has also not brought on record any comparable justifying his adoption of GP margin at 25%. Thus, this is a case where neither the assessee has justified his claim of profit and at the same time found to have manipulated the wages register which amounts to filing of inaccurate particulars and tampering with the profit nor the Revenue has brought any cogent material evidence on record to justify the adoption of GP rate of 25%. We are left with no choice but to make a fair estimate of the profit. 8. Considering the facts in entirety, in our considered view, an adhoc addition of Rs. 20,00,000/- should meet the ends of justice. We, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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