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2018 (7) TMI 1997 - HC - Income TaxRejecting the books of accounts u/s 145(3) - failure to provide adequate details regarding its generation of income - HELD THAT:- We find that the power to reject the books of account can only be exercised where the Assessing Officer, is not satisfied with the correctness and/or completeness of the books of account. This nonsatisfaction is not reflected in the order of the Assessing Officer.Thus, he does not satisfy the sinequonon to reject the books of account. Moreover, the Assessing Officer has ignored the fact that the accounts were audited. This would further support the view that there is no basis to reject the books of account. No substantial question of law. Computation of taxable income - Tribunal justification in upholding the orders of the CIT(A), restricting the disallowance of ₹ 16 lakhs to ₹ 3 lakhs when the Assessee itself had disallowed the same in its computation - HELD THAT:- As Respondent states that Respondent itself had disallowed the sum of ₹ 16 Lakhs while computing its total taxable income. Therefore, the CIT (Appeals) as well as the Tribunal restricting the disallowance to ₹ 3 Lakhs is contrary to the facts on record. Substantial question at Sr.No.(b) above has to be answered in the negative, i.e., in favour of the Appellant Revenue and against the Respondent Assessee.
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