Section 44AB, 44AD, 144 of Income tax Act, 1961—The present appeal has been filed against the judgment & order dated 28.04.2017 passed by ITAT Agra on the following ground—

Whether ITAT was legally justified in applying net profit at 8% u/s 44AD when the gross turnover of appellant exceeds 1 crore and books of accounts were maintained as per section 44AB?

Held that— From the perusal of the record, it reveals that the books of account of the assessee has been rejected and the authorities have rightly made the assessment enhancing the net profit @ 8%. Once, on finding of fact, it has been found that substantial amount has been spent by making payment in cash and that too, with vouchers having been self-made and not verifiable, admittedly, the appellant has not maintained the stock register and quantitative tally is not being made.

Once it has been found that the assessee has not voluntarily maintained its books of account, as required under the Act, the books of account have rightly been rejected and the net profit, which has been fixed at 8%, is quite reasonable. Moreover, all the authorities below have rejected the contention of the appellant. At this stage, no substantial question of law arises in the present appeal.[JUGENDER SINGH YADAV VERSUS PRINCIPAL COMMISSIONER OF INCOME TAX AGRA AND ANOTHER] [2019] 16 ITCD Online (26) [ALLAHABAD HIGH COURT]