Addition u/s. 40(a)(ia) not sustained as profit is estimated by applying net profit rate

ACIT Vs Vardha Infra Ltd. (ITAT Jodhpur)

ITAT Jodhpur held that if the books of accounts are rejected, and net profit is estimated by application of net profit rate, there cannot be again addition on account of any disallowance based on the same set of books of accounts. Thus, addition u/s. 40(a)(ia) set aside.

Facts- It was found that during the year, the assessee has itself disallowed a sum of Rs 13,87,72,635/- u/s 40(a)(ia) of the Income-tax Act, 1961. This shows that the assessee violated the provisions of Section 40(a)(ia) by not deducting tax on paymen

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