Held that\u00a0 the appellate authority had taken a realistic view and determined the net profit at 4 per cent. on the gross turnover of the assessee. The Commissioner (Appeals) properly clarified that the assessee was unable to explain the reasons for non-submission of the books of account before the assessing authority. Without proper books of account, the appellate authority had determined the net profit at 4 per cent. The assessee maintained the consistency for utilising this interest earned and interest paid in the profit and loss account. There was a nexus between the interest earned and the interest paid in relation to the assessee\u2019s business. Considering the factual matrix, the interest paid should be adjusted against interest received which would not be separately assessable.(AY.2015-16, 2017-18)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 144 : Best judgment assessment-Rejection of books-Estimate of net profit at 4 Per Cent. on gross turnover-Justified-Fixed Deposits utilized to acquire bank guarantee-Nexus between interest earned and interest paid-Interest paid to be adjusted against interest received.[S.56, 57, 145(3)]. <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-43732","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-bnm","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/43732","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=43732"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/43732\/revisions"}],"predecessor-version":[{"id":43733,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/43732\/revisions\/43733"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=43732"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=43732"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=43732"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}