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2014 (11) TMI 399 - AT - Income TaxTrading addition deleted on the ground of non-maintenance of stock register – Any defect in books of accounts or not – Held that:- The assessee’s business is for exporting of readymade garments - It requires various stages to produce finished products i.e. from grey fabric to printing, designing, stitching etc., it goes under various processes before final product of the readymade garments - It is difficult for the assessee to maintain stage wise stock register - The assessee was maintaining regular books of account with sales, purchase vouchers and books were audited but the audit report shows that record maintained by the assessee is not in proper manner as explained to them - The assessee changed the strategy of exporting the readymade garments by purchasing the grey fabric and printing it but these defects are not sufficient to reject the books result u/s 145(3) of the Act as held by the various courts and estimate the profit by the AO - CIT(A) has thoroughly examined all the aspects of all the defects pointed out by the Assessing Officer in his order, which has not been controverted by the revenue – Decided against revenue. Validity of assessment u/s 147 - Claim of deduction U/s 80IB on Duty drawback - Held that:- The assessee’s return was only processed u/s 143(1) of the Act and there was no scrutiny assessment - in Assistant Commissioner of Income-Tax Versus Rajesh Jhaveri Stock Brokers P. Limited [2007 (5) TMI 197 - SUPREME Court] it has been held that in such case there being no assessment, no opinion has formed by the AO - if a 148 notice is issued, it does not amount to any change of opinion since there was no opinion in existence at all - the AO is duty bound to take due notice of the judgment and give remedial effect in accordance with law - Since there was no opinion, the AO rightly reopened the assessment u/s 147 of the Act - the AO has acted within the parameters of law and reopening of the assessment has been rightly initiated - the validity of the reopening assessment is upheld - the deduction U/s 80IB of the Act is also not allowable to the assessee – Decided against assessee.
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