Tribunal held that once books of account rejected Assessing Officer required to estimate income of assessee on reasonable and proper basis. Past history can form basis for estimating current year’s gross profit . Gross profit estimated at 10.22 Per Cent. as against gross profit declared by assessee at 10.04 Per Cent. For the year under consideration ,addition equivalent to gross profit rate of 0.18 Per Cent. on declared turnover upheld. ( AY.2009-10, 2012-13 to 2014-15)
Kedia Exports P. Ltd. v. ACIT (2020) 81 ITR 83( SN) ( Jaipur) (Trib)
S.145: Method of accounting – Bogus purchases — Estimation of Income — Addition Equivalent to Gross profit rate of 0.18 Per Cent. on declared turnover upheld [ S.37(1), 144 , 145(3) ]