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2018 (3) TMI 52 - HC - Income TaxExclusion of Sales inflation figure from the assessee’s income - Special Auditor’s Report relied upon - Held that:- Merely because the assessee’s income was audited by the chartered accountants in regular process, there cannot be unqualified acceptance of the audited figures. But the nature of deletion directed for the residual period, in our opinion was not proper without scrutiny. There is no material from which the Tribunal could reach the conclusion that the sums directed to be deleted were not disputed by the assessing officer or that the sums represented the correct figures. We answer both the questions in favour of the revenue to the above extent and set aside the impugned decision. Having regard to the reasons given by the assessing officer in the two assessment orders for rejecting the claim of the assessee for deduction for the residual period, i.e. the period not covered by special audit, we are of opinion that a further exercise ought to be carried out by the assessing officer to ascertain the quantum of inflated income for the residual period which could qualify for deduction and remand the matter to him. We have already referred to the assessing officer’s order pertaining to the second block assessment which we have examined for adjudicating this appeal. This order has been annexed to an application taken out by the assessee, registered as G.A.No.1581 of 2016. This application has been framed as an application for production of additional evidence at the appellate stage. We are satisfied that the order of the assessing officer for the second block period annexed to the application was necessary for the purpose of pronouncing this judgment
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