CIT vs. Hind Agro Industries (ITAT Chandigarh)
| COURT: | ITAT Chandigarh |
| CORAM: | Bhavnesh Saini (JM), T. R. Sood (AM) |
| SECTION(S): | 144 |
| GENRE: | Domestic Tax |
| CATCH WORDS: | Best Judgement assessment |
| COUNSEL: | N. K. Sahi |
| DATE: | August 12, 2015 (Date of pronouncement) |
| DATE: | August 13, 2015 (Date of publication) |
| AY: | 2010-11 |
| FILE: | Click here to download the file in pdf format |
| CITATION: | |
| S. 144: If books are rejected and Gross Profit rate is estimated, separate disallowance of expenses cannot be made | |
The pattern of assessment under the IT Act is given by s.29/144 which states that the income from profits and gains of business shall be computed in accordance with the provisions contained in ss.30 to 43D. Sec. 40 provides for certain disallowance in certain cases notwithstanding that those amounts are allowed generally under other sections. The computation under s.29 is to be made under s. 145 on the basis of the books regularly maintained by the assessee. If those books are not correct or complete, the ITO may reject those books and estimate the income to the best of his judgement. When such an estimate is made it is in substitution of the income that is to be computed under s. 29. In other words, all the deductions which are referred to under s. 29 are deemed to have been taken into account while making such an estimate. This will also that the embargo placed in s. 40 also taken into account (Indwell Constructions vs. Commissioner of Income Tax (1998) 232 ITR 776 (AP) followed).
Related Judgements
- IFB Agro Industries Ltd vs. JCIT (ITAT Kolkata) S. 2(22)(e): Inter-corporate deposits ("ICDs") are not "loans and advances" and are not assessable to tax as "deemed dividend"S. 2(22)(e) refers to 'loans' and 'advances' and does not refer to a 'deposit'. The fact that the term 'deposit' does not mean a 'loan' and that the two terms…
- M/s Maheshwari Agro Industries vs. UOI (Rajasthan High Court) U/s 226 (6) the AO has the discretion not to treat the assessee as being in default during the pendency of the appeal. The AO has to normally use this discretion in favour of assessee particularly when high pitched assessments are made and the demand of tax is several…
- DCIT vs. Sham Sunder Sharma (ITAT Chandigarh) It is a clear case of showing disrespect to the order of the Tribunal. Therefore, contempt proceedings could have been initiated against the CIT (A) for blatantly disobeying the order of the Tribunal. The Madhya Pradesh High Court in Agrawal Warehousing & Leasing Ltd. vs. CIT 257 ITR 235…
- REI Agro Ltd vs. DCIT (ITAT Kolkata) Rule 8D(2)(ii) is a computation provided in respect of expenditure incurred by way of interest which is not directly attributable to any particular income or receipt. This clearly means that interest expenditure which is directly relatable to any particular income or receipt is not to be considered under rule…
- CIT vs. Murli Agro Products Ltd (Bombay High Court) S. 153A: No addition can be made in respect of an unabated assessment which has become final if no incriminating material is found during the search(iii) Once it is held that the assessment finalized on 29.12.2000 has attained finality, then the deduction allowed u/s 80HHC would attain…
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