CIT Vs. AMARSON WATCH CO.

JUDGEMENT

(1.) THIS Income Tax Appeal under Section 260 -A of Income Tax Act is directed against the order dated 25.10.2011 of Income Tax Appellate Tribunal (ITAT) in income tax appeal No. 440/Del/2010 before the said authority. Vide the said order, the ITAT rejected the appeal of the Revenue confirming the order of CIT (A) passed on 25.10.2011 in appeal No. 293/2008 -09.

(2.) THE appeal before the CIT (A) had been preferred by the respondent assessee impugning the order dated 31.12.2008 passed by the Assessing Officer rejecting the books of accounts under Section 145 of Income Tax Act, assessing the income for assessment year 2006 -2007 at Rs. 42,19,790/ - concluding, inter alia, as under: -

(3.) THE CIT (A), in its order dated 23.11.2009, deleted the addition of Rs. 39,15,783/ - made by the Assessing Officer applying the 20% of the gross profit rate on the total sale, after rejection of books of accounts u/s 145 of the Act, and reduced the disallowance of the car maintenance, telephone expenses and depreciation on car from 20% to 10% of the claim made by the assessee. This view of the CIT (A) was confirmed by the ITAT in its judgment dated 25.10.2000.