9911796707
TMI Blog2012 (7) TMI 908X X X X Extracts X X X X X X X X Extracts X X X X ..... 5. It means that the AO has to determine the income in accordance with the method of accounting adopted by an assessee, provided that method enabled the Assessing Officer to deduce the true income of an assessee. If it emerges out from the record that on the basis of the account maintained by an assessee, it is not possible to deduce true income then he can resort the estimation of the profit. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee is that Learned CIT(Appeals) has erred in confirming the addition of ₹ 4 lacs. 2. The brief facts of the case are that the assessee firm at the relevant time was engaged in manufacturing of rice. It has filed return of income on 3rd September, 2008 declaring an income of ₹ 23,97,760. The case of the assessee was selected for scrutiny assessment and a notice under sec. 143(2) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e etc. When learned Assessing Officer confronted the assessee on this issue, it was stated by the assessee that it is not possible to maintain quality-wise details of all items. Assessing Officer has rejected the book results of the assessee and made an ad hoc addition of ₹ 4 lacs. 3. Appeal to the learned CIT(Appeals) did not bring any relief to the assessee. 4. Before us, the learned ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ctions (2) (3) of section 145 of the Income-tax Act, 1961. It means that the Assessing Officer has to determine the income in accordance with the method of accounting adopted by an assessee, provided that method enabled the Assessing Officer to deduce the true income of an assessee. If it emerges out from the record that on the basis of the account maintained by an assessee, it is not possible to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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