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2019 (8) TMI 851 - HC - Income TaxRevision u/s 263 - disallowance u/s 40 (a) (ia) when books of accounts was rejected - HELD THAT:- As decided in M/S. HYCONS INFRASTRUCTURE (INDIA) LTD. [2014 (7) TMI 1306 - ANDHRA PRADESH HIGH COURT] while dismissing the Revenue’s appeal, the Division Bench observed that amendment or no amendment, if the profit is estimated on any ground, whether ignoring books of accounts or rejection thereof, then there is no scope for allowability/disallowability of any deduction. In our considered view, the above provision mentions how to consider the same when the books of accounts are available and the same shall be accepted on fact by the authorities below. We are now informed by Ms. K. Mamatha, learned senior counsel for Revenue, that the aforestated order of the Division Bench has been confirmed by the Supreme Court by virtue of the dismissal of the SLP at the threshold. It is not open to the Revenue to assert any right to allow or disallow any deductions once the books of accounts are rejected. Such an option would arise only in the event the books of accounts are accepted. In the light of the aforestated decision, which we are not inclined to disagree with, the main questions of law sought to be raised presently stand settled against the Revenue.
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