Case Law Details
ACIT Vs Motisons Jewellers Ltd. (ITAT Jaipur)
ITAT Jaipur held that rejection of books of account on the basis of insignificant defects is unjustified as Before invoking provisions of section 145(3) AO has to bring on record material the basis on which he has arrived at the conclusion with regard to correctness/ completeness of the accounts.
Facts- AO observed that since in the instant case books of accounts are rejected as discussed above, therefore, keeping in view various jurisprudences hodling that part history is the best guiding factor to determine taxable profit in cases where books of accounts are rejected. Accordingly, the average N.P. of the assessee was computed at 2.59%.
AO also observed that assessee deposited amount of Rs. 12,17,48,500/- in the demonetized currency which the AO treated the same as unexplained cash credit of the assessee and by applying the provisions of section 68 of the Act the same was added as income of the assessee and the same taxed as per the provisions of section 115BBE of the Act.
Aggrieved by the order of AO making the assessment based on the above stated fact, the assessee preferred an appeal before the ld. Commissioner of Income Tax, Appeals-4, Jaipur. The appeal filed by the assessee was partly allowed by the ld. CIT(A).
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