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2016 (3) TMI 208 - AT - Income TaxRevision u/s 263 - Held that:- As regards the directions of the Ld.CIT to AO to verify details of the claims of depreciation made by the assessee, the AO in the fresh assessment proceedings held that, the assessee made no claim for depreciation. Thus this observation of the Ld.CIT, Meerut is factually in correct. There is neither an error in the original order of the AO passed u/s 143(3) of the Act on 16.12.2010, nor there is any prejudice caused to the Revenue. Hence this ground of revision is devoid of merit. Directions of the Ld.CIT given to the AO to verify the unsecured creditors, unsecured loans, the AO in his fresh assessment order passed u/s 143(3) r.w.s.263 of the Act, did not draw any adverse inference. This direction of the Ld.CIT was in the nature of directing rowing enquiries. No specific finding was arrived at by the Ld.CIT that there was prejudice caused to the Revenue or that there was an error in the original order of the AO passed u/s 143(3) of the Act. Thus this ground of revision is bad in law. On non maintenance of books of accounts finding of the Ld.CIT is wrong. Maintenance of records and books as prescribed u/s 44 (GG)(AA) r.w.s. 6F(3) of the Act is applicable to only professionals. The assessee being a limited company, cannot be said to be carrying on any profession. The assessee company has maintained books of accounts as required under law. Thus the foundation on which the Ld.CIT, Meerut came to a conclusion that the books of accounts of the assessee have to be rejected by invoking the provisions of S.145(3) is not legally tenable. This is a case where Ld.CIT has rejected the books of accounts, without even examining the same. The turnover as well as profits are estimated on surmises and conjectures. This cannot be sustained as it is totally arbitrary and illegal. - Decided in favour of assessee
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