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2014 (12) TMI 640 - RAJASTHAN HIGH COURTApplicability of provision of section 145(3) - Income derived from execution of contract work awarded by different departments of the Government – Held that:- The AO invoked the authority u/s 145(3) being not satisfied about the correctness and completeness of the accounts of the assessee – u/s 145(3), the requirement is that the AO must be satisfied about correctness and completeness of the accounts of the assessee - mere submission of vouchers is not sufficient to arrive at the conclusion that the trading result shown by the assessee are true - The rejection of accounts would always be justified when the accounts books are found unreliable, incorrect or incomplete for valid reasons – the AO by relying upon several errors and incompleteness in the books of accounts decided to invoke the authority as per Section 145(3) - no plausible reason was extended by the assessee for errors in the vouchers and in other accounts books – the Tribunal without examining the errors pointed out by the AO reversed the order of assessment and its affirmance by CIT(A) by relying upon the principle that the vouchers submitted are not required to be treated untrue - The tribunal did not choose to examine the fact that no plausible reason was extended by the assessee to satisfy the Assessing Officer about their truthfulness – thus, the order passed by the Tribunal is set aside – Decided in favour of revenue.
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