AO Erred by Making Additions to Rejected Books Instead of Conducting Best Judgment Assessment Based on Assessee's Past Data.

AO Erred by Making Additions to Rejected Books Instead of Conducting Best Judgment Assessment Based on Assessee's Past Data. https://www.taxtmi.com/highlights?id=30647 When the AO found mistakes in the books of accounts of the assessee on verification and consequently, rejected the same, then it ought not to have made additions by relying upon the same books of accounts. Instead, the AO ought to have made the best judgment assessment on the basis of the history and nature of business and the net profit rate as shown by the assessee in the previous year. - HC en-us Sat, 06 Aug 2016 13:51:19 +0530 Sat, 06 Aug 2016 13:51:19 +0530 TaxTMI RSS Generator AO Erred by Making Additions to Rejected Books Instead of Conducting Best Judgment Assessment Based on Assessee's Past Data. https://www.taxtmi.com/highlights?id=30647 When the AO found mistakes in the books of accounts of the assessee on verification and consequently, rejected the same, then it ought not to have made additions by relying upon the same books of accounts. Instead, the AO ought to have made the best judgment assessment on the basis of the history and nature of business and the net profit rate as shown by the assessee in the previous year. - HC Highlights Income Tax Sat, 06 Aug 2016 13:51:19 +0530 https://www.taxtmi.com/highlights?id=30647