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2019 (8) TMI 362 - HC - Income TaxRejection of the books of account of the Assessee - AO alleged that assessee shown higher profit to claim deduction u/s80IC - estimate addition of expenses u/s 69C - AO had not examined any comparable units before concluding that the Assessee has shown more than ordinary profits given that the consumption of stock did not match with the items produced by the Assessee - HELD THAT:- Assessee’s appeal was allowed by the CIT(A) by an order dated 3rd March, 2015 inter alia on the ground that before invoking Section 145, the AO had not given any opportunity to the Assessee and therefore, could not have drawn an adverse influence against it. The ITAT observed on merits that to show the higher profit the assessee either might have inflated the assets or have understated certain liabilities, in absence of this, the profitability cannot be shown at higher figure. The corresponding effect of the higher profit has not been identified by the learned assessing officer. No indication has also been drawn by the assessing officer that how the assessee has inflated its profit and correspondingly inflated its assets or deflated its liabilities. The reasoning of both the CIT (A) as well as the ITAT in disagreeing with the AO’s rejection of the Assessee’s books of accounts appears to be on sound legal basis consistent with the law. The said orders, therefore, do not call for interference. No substantial question of law arises.
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