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2014 (10) TMI 430 - AT - Income TaxNon-speaking order by the CIT(A) - Rejection of books of accounts us 145(3) - Allowability of exemption u/s 10AA – Failure to establish the manufacturing of goods in SEZ or not - The assessee claimed exemption u/s. 10AA on the ground of income derived from manufacturing and export of diamond studded gold and silver jewellery from its SEZ unit – Held that:- Revenue pointed out that nowhere in the operative portions of the order, the CIT(A) has given a finding about the adverse observation of the AO in respect of availing of time for manufacturing of silver articles of 317 pieces and the abnormally low consumption of electricity during the relevant period - assessee could not controvert the submission of the revenue to the effect that the order of the CIT(A) is a non-speaking order and was passed without dealing with the findings of the Assessing Officer – the order of the CIT(A) could not be sustained as nothing has been stated in t in respect of the merit of the issue involved - simply because after rejecting the books of account, if turnover and profit as claimed in the return is not varied by the AO, it cannot be held that the claim for deduction u/s. 10AA has also to be accepted – CIT(A) has not dealt with the relevant observations made by the AO for deriving an adverse inference against allowability of exemption u/s. 10AA – thus, the matter is to be remitted back to the CIT(A) for fresh adjudication after passing speaking order on the issue – Decided in favour of revenue.
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