2018 (6) TMI 1624

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..... imated @ 8% of turnover, then, the same Books of Account cannot be relied upon for the purpose of making addition under the provision of Section 40 of the Act. In doing so, the Tribunal has not committed any error. We do not find any substantial question of law warranting reconsideration. - Decided against revenue. - Miscellaneous Appeal No.344 of 2011 - - - Dated:- 25-6-2018 - Chief Justice And Mr. Justice Rajeev Ranjan Prasad For the Appellant/s : Mr. Rishi Raj Sinha For the Respondent/s : ORAL JUDGMENT HONOURABLE THE CHIEF JUSTICE This is Revenue's appeal under Section 260A of the Income Tax Act calling in question tenability of an order .....

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..... . From the above para of the order of the ITAT in the assessee's own case for the same assessment year, we find that it is observed by the ITAT that taking into account the totality of facts and circumstances of the case, action of Assessing Officer to estimate the income by applying net profit rate of 8% is upheld. Once the books of the assessee has been rejected and the income of the assessee was estimated @ 8% of the turnover, the Assessing Officer cannot take help of the same books of account to make any further disallowance on the basis of entries in such rejected books of account. Considering this aspect of the case, we are in agreement of the learned Commissioner (Appeals) that once income is estimated by the Ass .....

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..... question of law arises for consideration is as to whether the addition made as per the statutory provision could be interfered with in a manner done. Having heard learned counsel for the parties and on analyzing the reasons that weighed with the Tribunal for rejecting the justification given by the learned Commissioner (Appeals), we find that the Tribunal has not committed any error. Once the Books of Account were rejected and the profit was estimated @ 8% of turnover, then, the same Books of Account cannot be relied upon for the purpose of making addition under the provision of Section 40 of the Act. In doing so, the Tribunal has not committed any error. We do not find any substantial question of law warranting reconsiderati .....

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