TaxTMI 
TaxTMI 
2016 (10) TMI 1068
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....dditions by rejecting the whole books of account as well as the addition by rejecting some of the purchases can be made simultaneously and whether this would not tantamount to double addition ?" 3. Counsel for the appellant has contended that the assessee's books of account were rejected and they were assessed on the basis of estimation and while estimating the other income also addition was made under section 69C of the Income-tax Act which would amount to double taxation while estimating the income. While rejecting the books of account, the Assessing Officer has considered the overall turnover for the head as has been detailed as under : "Subject to the above remarks total income is computed as under : Net....
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....iew of the decision of this court reported in CIT v. Tyaryamal Balchand [1987] 165 ITR 453 (Raj), it has held as under (page 459) : ". . . the Income-tax Officer was within his right to tax the amount of Rs. 16,950 as income from undisclosed source, even though he had added the amount of Rs. 18,117 in addition to the profits shown by the respondent-firm in its account books. However, the assessee was well within his rights to plead that this amount of Rs. 16,950 is covered by the intangible income assessed at Rs. 18,117 and added to the income of the firm and apart from this, since for the last preceding three years, substantial additions amounting to Rs. 32,797 have been made, the amount of Rs. 16,950 could be taken as having come....
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....of the Tribunal in point is a finding of fact which this court cannot interfere . . ." 6. The Andhra Pradesh High Court in the case of Maddi Sudarsanam Oil Mills Co. v. CIT [1959] 37 ITR 369 (AP) has held as under : "Accounts-Rejection-Profit estimated at flat rate-Further addition on account of cash credits-Income-tax authorities cannot adopt a flat rate to compute gross profit as well as rely on the books for purpose of adding unexplained cash credit which were part of the scheme of balancing the accounts. The Tribunal was careful in emphasising that it is basing its computation on the estimate of 9.5 per cent. and not upon any of the items which were taken into account by the Income-tax authorities. The scrutiny by t....
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....Constructions v. CIT [1998] 232 ITR 776 (AP) has held as under : "The pattern of assessment under the Income-tax Act is given by section 29 which states that the income from profits and gains of business shall be computed in accordance with the provisions contained in sections 30 to 43D. Section 40 provides for certain dis allowances in certain cases notwithstanding that those amounts are allowed generally under other sections. The computation under section 29 is to be made under section 145 on the basis of the books regularly maintained by the assessee. If those books are not correct or complete, the Income-tax Officer may reject those books and estimate the income to the best of his judgment. When such an estimate is made it is i....