Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2015 (6) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (6) TMI 931 - AT - Income TaxRevision u/s 263 - The assessee showed lesser profit from the trading activity, which was not properly looked into by the Assessing Officer - Held that:- The order sheet entry of 9.11.2010 divulges that the assessee’s counsel appeared and produced books of account, which were test checked by the AO. Again, on 16.11.2010, the assessee’s C.A. appeared and produced books of account, which were again test checked and the assessment proceedings were completed on 8.12.2010. A bare perusal of the order sheet entry of the AO amply demonstrates that the assessee was called upon to produce books of account, which were duly produced on at least two occasions and the same were also checked by the AO. The observations of the ld. CIT about the non-production of books of account are, therefore, not tenable. Further, we are unable to find any rationale of the ld. CIT in applying a net profit rate of 5% on total turnover for computing income of ₹ 65.84 lac from business operations. This is again an application of the ad hoc net profit rate, unsubstantiated with any cogent reason. As the AO did carry out investigation on all the relevant aspects of the matter, which is evident from the order sheet entry, and the reply of the assessee giving details on several occasions, the assessment order cannot be termed as erroneous. We, therefore, set aside the action of the ld. CIT in making an addition of ₹ 65.84 lac by applying an ad hoc net profit rate. - Decided in favour of assessee. Non-verification of sundry creditors and advances from customers by AO - Held that:- It is a simple case of certain creditors appearing in books of the assessee and the AO getting satisfied with their genuineness after examining the details called for by him. It is not a case of no investigation at all by the AO of such creditors and advances or the AO reaching a patently incorrect conclusion or not conducting any further inquiry, which the attending circumstances suggested. Simply saying that it was for the assessee to prove the genuineness and credit worthiness of the creditors, without any thing to the contrary in the extant facts of the case, is not enough to exercise jurisdiction u/s 263.- Decided in favour of assessee. Non verification of TDS claim and even TDS certificates were not on record - Held that:- The assessee did furnish the necessary details before the AO, which are available on pages 296 onwards of the paper book. The ld. CIT has not spelt out as to how these details were lacking or incorrect. We are disinclined to accept the view point of the ld. CIT on this score as well. - Decided in favour of assessee.
|