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TMI Blog2019 (2) TMI 273X X X X Extracts X X X X X X X X Extracts X X X X ..... ch were rejected by him. As decided in BANWARI LAL BANSHIDHAR and INDWELL CONSTRUCTIONS VERSUS COMMISSIONER OF INCOME-TAX [1998 (3) TMI 121 - ANDHRA PRADESH HIGH COURT] the additions made by the Assessing Officer on the basis of rejected books of account over and above the business income estimated by him by applying a net profit rate were not sustainable and the CIT(Appeals) was fully justified in deleting the same. In that view of the matter, we uphold the impugned order of the ld. CIT(Appeals) and dismiss this appeal of the Revenue. - I.T.A. No. 2131/KOL/2013 - - - Dated:- 30-11-2018 - Shri P.M. Jagtap, Vice-President (KZ) And Shri S.S. Viswanethra Ravi , Judicial Member For the Appellant : Shri Sankar Halder, Addl . CIT, Sr. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... disallowance of ₹ 96,000/- on account of watch ward expenses u/s40(a)(ia). 7. That on the facts and in the circumstances of the case the Ld. CIT(A) has erred in law making observation that no additions u/s.68 or u/s.69 of the IT Act could not be made where books of accounts has been rejected u/s.145 of the IT Act and profit has been estimated . 2. The assessee in the present case is a Company, which is running an Iron Ore Crusher Plant. The return of income for the year under consideration was filed by it on 09.02.2008 declaring total income of ₹ 1,38,978/-. During the course of assessment proceedings, it was noticed by the Assessing Officer from the relevant figures of sales, purchases, expenses and sundry debtors a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the total income of the assessee:- (i) Difference in the balance of sundry creditor Rs.26,03,899/- (ii) Difference in the loans and advances added under section 69 ₹ 1,10,000/- (iii) Disallowance of sales tax payable under section 43B ₹ 3,27,751/- (iv) Disallowance of preoperative expenses ₹ 2,33,598/- (v) Disallowance of Ward and Watch expenses under section 40(a)(ia) ₹ 96,000/- Accordingly the total income of the assessee for the year under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd also perused the relevant material available on record. It is observed that the books of account of the assessee were rejected by the Assessing Officer and the income of the assessee was determined on estimated basis by applying a net profit rate. Although the ld. CIT(Appeals) reduced the estimate of assessee s income as made by the Assessing Officer by applying the net profit rate of 25% as against the net profit rate of 30% adopted by the Assessing Officer, the action of the Assessing Officer in rejecting the books of account of the assessee was upheld by him. After estimating the business income of the assessee at a substantially higher figure, the Assessing Officer proceeded further to make various other additions on the basis of boo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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