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2014 (4) TMI 1126 - AT - Income TaxCIT(A) power of enhancement in respect of an issue which was not the subject-matter of the appeal - Held that:- CIT (A) can make addition in respect of item not considered by the Assessing Officer. See Kashi Nath Chandiwala [2004 (12) TMI 21 - ALLAHABAD High Court ] - Decided against assessee Disallowance towards Labour and Wages and towards Creditors - Held that:- When the assessee is not producing the books of account along with the bills and vouchers, the Assessing Officer or CIT(A) is left with only two choices. Either he has to accept the claim of the assessee blindly because he cannot pin point any defect in the claim of the assessee in the absence of books of account or he has to make an ad hoc disallowance/addition on the reasonable basis. The first action of blindly accepting the entire claim even in the absence of books of account cannot be accepted as a correct approach and therefore, the approach adopted by learned CIT(A) of making ad hoc disallowance / addition has to be upheld although it has to be seen as to whether the same is reasonable or not. In this regard, we find that nothing has been produced before us in the form of comparative chart of the expenditure claimed in the present year and in the preceding or and succeeding year to bring on record that the addition/ disallowance made by CIT(A) is excessive or unreasonable. Hence, in our considered opinion, no interference is called for in the order of learned CIT(A) on this issue.- Decided against assessee
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