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2013 (8) TMI 661 - AT - Income TaxDisallowance of warranty provision - Contingent nature of warranty provision - Held that:- authorities below are expected to follow the principle of consistency in the light of orders passed by ITAT and first appellate authority in assessee’s own case in earlier assessment years - there was a calculation mistake at the end of Assessing Officer which was later corrected by the Commissioner of Income Tax(A), therefore, it is appropriate to restore this issue to the file of Assessing Officer with a direction that he will decide the issue of assessee’s claim pertaining to provision of warranty in the light of earlier orders of the Tribunal and first appellate authority for the earlier assessment years in assessee’s case - Decided in favour of assessee. Rejection of books of accounts - Rejection of application u/s 46A - Held that:- Assessee company filed only journal of April, July, October, 2006 and March 2007 before the Assessing Officer and Assessing Officer rejected the books of accounts u/s 145(3) of the Act with an observation that the books of accounts are not properly maintained and in absence of complete ledger, cash book and vouchers, it is not possible to verify trading results or expenses claimed by the assessee - the books of accounts are necessary evidence for the assessment proceedings and the assessee is bound to cooperate with the Assessing Officer by submitting relevant evidence as per requirements of the Assessing Officer. In the present case, the Assessing Officer has specifically mentioned in the remand report that despite several opportunities to the assessee, the complete books of accounts, bills and vouchers related to the claim of expenses were not submitted by the assessee. The Assessing Officer made a disallowance of 20% of expenses on estimated basis on account of non-production of books of accounts, bills and vouchers despite affording adequate opportunity to the assessee for submission of the same. The Assessing Officer also made a contention in the remand report that the Assessing Officer has never refused to admit any evidence nor there was a position that the assessee is prevented by any sufficient cause for producing the evidence in spite of the fact that sufficient opportunities were granted to the assessee for submitting the evidence in question i.e. production of books of accounts, bills/vouchers - Assessing Officer rejected the books of accounts by holding that the assessee’s accounts were incomplete and incorrect without substantiating anything to prove that its accounts were incomplete and incorrect. Books of accounts of the assessee were rejected by the Assessing Officer on baseless reasons which prevented the assessee to produce relevant evidence in support of his claim - Commissioner of Income Tax(A) also rejected the application of the assessee u/s 46A of the Rules without going to the root of the cause which prevented the assessee to produce relevant evidence before the Assessing Officer - claim of the assessee pertaining to total expenses claimed in the Profit & loss account have not been duly verified, evaluated and adjudicated by the authorities below - Decided in favour of assessee.
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