Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2014 (7) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (7) TMI 1100 - AT - Income TaxDeduction on account of interest and remuneration to partners - Commissioner of Income-tax give a show-cause notice under section 263 alleging that there was inability to produce evidence in support of its claim of expenses and acceptance of net profit of 5.58 per cent. of the gross receipts - Held that:- Assessing Officer called for the information as submitted vide order sheet entry, dated March 16, 2009, which was responded by the expressing inability to provide the said evidences of expenses and the fact is noted by the learned Assessing Officer in his assessment order. In the opinion of the learned Assessing Officer, books of account were not reliable and accordingly he proceeded after rejecting the books of account and estimating the income by applying certain percentage of profit on the gross receipts. To this extent, we are of the view that he has not committed any error though the enquiries has to be closed at some stage and the learned Commissioner of Income-tax cannot transgress the jurisdiction under section 263 by mentioning that no proper enquiry has been made and he is not authorised to substitute his opinion for that of the learned Assessing Officer. Commissioner of Income- tax is not justified in cancelling the assessment since we do not find the order of the learned Assessing Officer as erroneous in so far prejudicial to the interests of the Revenue and also the assessment has not been made in the present case under section 144 so as to warrant no deduction under section 184(5) of the Act and such deduction of interest and remuneration were available under section 40(b) of the Act. Accordingly, we cancel the order of the Commissioner of Income-tax under section 263 of the Act - Decided in favour of assessee.
|