The Tax Publishers2020 TaxPub(DT) 4806 (All-Trib)

INCOME TAX ACT, 1961

Section 32

When the income of the assessee was estimated based on the rejection of Books of Account by adopting the Net Profit @6%, then, further disallowance of depreciation was not warranted.

Depreciation - Allowability - Rejection of books of account -

AO as against the declared Net Profit of 5.09%, estimated income of assessee by adopting Net Profit @6% and proceeded to disallow the depreciation on the ground that one of the trucks purchased during the year under consideration was not to put to use. Held: When the income of the assessee was estimated based on the rejection of Books of Account by adopting the Net Profit @6%, then, further disallowance of depreciation was not warranted.

REFERRED :

FAVOUR : In favour of assessee.

A.Y. : 2012-13



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