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2019 (7) TMI 642 - HC - Income TaxRejection of books of accounts u/s 145 - According to the AO, the Assessee had inflated the expenses and showed artificial excess consumption to the tune of 9.67% - HELD THAT:- Mr. Hossain was unable to dispute the fact that for the immediately preceding and subsequent AYs, the Assessee’s books of accounts were in fact accepted by the AO in scrutiny under Section 143 (3) of the Act without making any addition. He was unable to explain how this would be tenable particularly considering that it is inconceivable that the accounts of a particular AY are found unacceptable under Section 145 of the Act but not those of the immediately preceding or subsequent AYs. If accounts of a particular AY are found not reflecting the true state of affairs, they would undoubtedly impact the accounts for the immediately preceding or subsequent AY. It is inconceivable that the accounts of one particular AY in isolation is rejected and not those of the immediately preceding or subsequent AY. While as explained in Honey Enterprises v. Commissioner of Income Tax [2015 (12) TMI 519 - DELHI HIGH COURT] the rule of consistency is not inflexible, and has to be applied given the facts and circumstances of a particular case, as far as the case on hand is concerned, for the reason explained hereinabove, its invocation by the ITAT in the impugned order cannot be faulted. In view of the detailed findings given by the CIT(A) by examining the accounts afresh and holding that there was no justification for the AO to make the addition, which findings have been concurred with by the ITAT, no case is made out for remand of the matter to the CIT (A).
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