ACIT Vs. Shri Laxmi Narain Agarwal (ITAT Jaipur)- It is contended that the order of the ld. CIT(A) will reveal that no specific defects in the books of account were found by the AO. The assessee’s working site being at remote place, cash payment to labourer through self made vouchers becomes a necessary part of assessee’s business from year to year. The ld. CIT(A) has himself held that defects pointed out by the AO are general in nature. It is a settled law that books of account cannot be rejected on the basis of general findings. It is incumbent upon the AO to establish the specific defects as to non-ascertainment of correct taxable income.
Estimate arrived at by lower authorities cannot be interfered with unless estimate is demonstrated to be arbitrary or unjustified
We have heard the rival contentions and perused the materials available on record. The findings of the ld. CIT(A) are that defects in the books of account are general in nature which could not be controverted by the ld. DR . There is no specific defect as pointed out by the AO. In case of estimation of profit, Hon’ble Rajasthan High Court in the case of CIT vs. Gotan Lime Khanij Udyog (supra) has held that past history of the assessee is a best source for estimation. It is a settled law that an estimate arrived at by the lower authorities cannot be interfered with unless the estimate is demonstrated to be arbitrary or unjustified. The ld. DR could not demonstrate this aspect. In view thereof and respectfully the decision of Hon’ble Rajasthan High Court in the case of CIT vs. Gotan Lime Khanij Udyog (supra) and also ITAT Jodhpur decision in the case of Ajay Goyal vs. ITO, 99 TTJ 164, the order of the ld. CIT(A) on the issue of estimation is upheld. Thus the appeal of the Revenue is dismissed.
INCOME TAX APPELLATE TRIBUNAL,JAIPUR BENCHES, JAIPUR
BEFORE: SHRI R.P. TOLANI, JM & SHRI VIKRAM SINGH YADAV, AM
ITA No. 44/JP/2014- Assessment Year : 2008-09
C.O. No.9/JP/2014- (Arising out of ITA No. 44/JP/2014)
The ACIT Vs. Shri Laxmi Narain Agarwal
Revenue by : Shri Raj Mehra, JCIT
Assessee by : Shri Manish Agarwal , CA
Date of Hearing : 21/10/2015
Date of Pronouncement : 26/10/2015
ORDER PER R.P. TOLANI, JM:-
The Revenue has filed an appeal against the order of the ld. CIT(A)-II, Jaipur dated 30-10-2013 for the assessment year 2008-09. The assessee has filed the cross objection.
ACIT , Central ,Circle-3,Jaipur vs. Shri Laxmi Narain Agarwal
2. The solitary ground of the Revenue is as under:-
