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Principal Commissioner Of Income Tax 4 vs M/S.Marg Limited on 20 July, 2017

This observation has been made by the Assessing Officer at page No. 1 of his order. Therefore, without rejecting books of account and without observing any discrepancy in the books of account, the action of the Assessing Officer in applying higher gross profit rate is not justified. The Assessing Officer has also not rejected books of account and merely on the basis of lower gross profit rate and on the basis of some discrepancies in the figures filed in the return of income I.T.A. No.160/Lkw/2017 8 Assessment Year:2012-13 and as per audit report, has made this addition. Hon'ble Madras High Court in the case of Marg Limited (supra), under the similar facts and circumstances, has held that the Assessing Officer needs to reject books of account before making his own assessment. Hon'ble Court has held that it is sine qua non that while estimating the income the Assessing Officer has to come to a conclusion that the books of account maintained by the assessee are incorrect. The findings of Hon'ble Court, as contained from para 4 onwards, are reproduced below:
Madras High Court Cites 18 - Cited by 3 - Full Document
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