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2012 (11) TMI 807 - AT - Income TaxDisallowance of 25% of the total expenses u/s 144 - CIT(A)restricted it to 5% - Held that:- The assessee did not appear before the AO nor produced the relevant books of accounts or bi lls/vouchers before the AO or even before the ld. CIT(A). There is nothing to suggest as to whether or not the assessee preferred any appeal against the findings of the CIT(A) . . As under the scheme of s. 144 itself an assessment must be done only to the best of the officer's judgment and after taking into account all relevant materials which had been gathered , thus the proper thing for the CIT(A) to have done would have been to examine the relevant books and bills/vouchers and ascertain the relevancy and validity of the materials on the basis of which the AO added the amounts instead of deleting/reducing the additions - CIT(A) did not allow any opportunity to the AO before reducing the disallowances and concluding that completion of assessment u/s 144 was not proper. There is nothing to suggest that the CIT(A) undertook any independent enquiries or even called for any report from the AO in the light of his findings in the assessment order, even while being fully aware that assessment had been completed u/s 144 - set aside the order of the CIT(A) in order to enable him to decide the matter afresh - in favour of revenue by way of remand.
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