Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2017 (8) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (8) TMI 178 - AT - Income TaxDisallowance for non-production of the evidence on expenditure claimed - assessee maintains the regular books of account audited under section 44AB - Held that:- When the return of income has been filed with supporting account and audit report in Form No. 3CB duly signed by the chartered accountant, the audited profit and loss account cannot be ignored and the Assessing Officer/Commissioner of Income-tax (Appeals) are not permissible to proceed to disallow the expenses on the basis of the artificial estimation only self-estimation of the Assessing Officer/Commissioner of Income-tax to disallow the expenditure claimed by the assessee is not sustainable in the eyes of law particularly when the audited books account and the balance-sheet have not been rejected by the Assessing Officer so the addition on the basis of estimation is not permissible on the flimsy ground that some of the bills and vouchers were handmade and most of the payments were made in cash particularly when all these documents have been duly audited and have not been disputed by the Assessing Officer. As the assessee himself had shown profit at 9.9 per cent. and has been regularly maintaining the books of account in the regular course of business duly audited under section 44AB, the Assessing Officer as well as the Commissioner of Income-tax (Appeals) have exceeded their powers to disallow the deductions claimed by the assessee in the face of the books of account duly audited under section 44AB, having been accepted by the Assessing Officer - Decided in favour of assessee.
|