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2013 (10) TMI 920 - AT - Income TaxRejection of Books of Accounts u/s 145 (3) – Held that:- The reason given by the CIT (A) for upholding the rejection of books of accounts u/s 145(3) of the Act is not justified as the assessment order itself mentions that the assessee produced all the books of account along with supporting vouchers - The auditor of the assessee has specifically stated in his statutory audit report in form 3CB u/s 44AB of the Act that the profit and loss account gives a true and fair view of the profits of the assessee for the year. The AO has applied the net profit rate of 5.85% on the basis of A.Y. 2007-08 even when the same is without giving any reason to reject the assessee's view point of reduction in Net Profit because of increase in cost of bitumen - The rate has been applied devoid of any bearing thereon of the reasons given for rejection of books of account - the order passed by the CIT Udaipur u/s 263 of the Act for the A.Y. 2008-09 does not give any conclusive finding regarding any specific defect in the books of accounts and consequent specific disallowance - He has only given a direction to verify certain expenditure, which are claimed at an amount higher than the preceding years - Such directions in absence of any conclusive finding would not have a bearing on the case for A.Y. 2009-10 - rejection of books of account u/s 145(3) of the Act is not justified - the entire addition id deleted – decided in favour of assesse.
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