AO cannot estimate profits, merely because audited books of accounts, are misplaced: ITAT
AO cannot estimate profits, merely because audited books of accounts, are misplaced: ITAT
Krishna Mohan Choursiya vs. ITO ( ITA No.: 853/Ind/2017)
Facts:
1. The assessee had misplaced the books of accounts after the conduct of tax audit by an independent tax auditor. Assessee had also filed a complaint with the police.
2. The AO estimated profit @8% of the revenue during the assessment proceedings, since the assessee could not produce the books of accounts.
The ITAT Indore held as below:
1.The revenue did not consider the fact that the financial results of the assessee were comparable with the results of the preceding as well as subsequent years.
2. Further, the Chartered Accountant who audited the books of account had also not given any adverse findings regarding the books of account maintained by the assessee.
3. Therefore, the assessee cannot be put in a disadvantageous position merely for the reason that his books of account were misplaced
