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2019 (10) TMI 996 - AT - Income TaxNon satisfaction of pre-requisites of a speaking order by CIT-A - Shortage of fabric - HELD THAT:- A perusal of brief finding recorded by the CIT(A) would reveal that the CIT(A) has not considered any material on the record as well as arguments of the assessee pleaded in the written submissions. Thus, the impugned order cannot be branded as a speaking order. At this stage, we would like to make reference to the judgment of Roadmaster Industries of India P.Ltd. Vs. ACIT, [2006 (5) TMI 86 - PUNJAB AND HARYANA HIGH COURT] as considered large number of judgments at the end of Hon’ble Supreme Court as well as at the end of Hon’ble High Courts in order to propound why reasons are necessary in support of conclusions of any adjudicating authority. If we visualize written submissions and finding given by the ld.CIT(A), then it is apparent that such finding does not contain any adjudication on the submissions of the assessee and not sustainable. We set side finding of the ld.CIT(A) on this issue in both the three years. We restore this issue to the file of the ld.CIT(A) for re-adjudication. Disallowance of foreign travel expenses - HELD THAT:- As emerges out from the record that the expenses were incurred on travel of Smt.Sayraben Bagrecha for a trip to Hong Kong. She is not an employee. No evidence of technical, professional qualification of Smt.Sayraben was filed. Therefore, the assessee failed to establish that these expenses were incurred for the purpose of business. Considering the finding recorded by the ld.Revenue authorities, we do not find any merit in these grounds of appeal in both the years. Profit estimation - Non rejection of books of accounts - HELD THAT:- income has to be computed in accordance with the method of accountancy followed by an Assessee i.e. cash or mercantile, such method has to be followed keeping in view the Accounting Standard notified by the Central Government from time to time. Sub clause 3 provides a situation, that is, if the Assessing Officer is unable to deduce the true income. On the basis of method of accountancy followed by an Assessee than he can reject the book result and the assessee’s income according to his estimation or according to his best judgment. The Assessing Officer in that case is required to point out the defects in the accounts of Assessee and required to seek explanation of the Assessee qua those defects. If the assessee failed to explain the defects than on the basis of the book result, income cannot be determined and Assessing Officer would compute the income according to his estimation keeping in view the guiding factor for estimating such income. - Both the authorities have not taken into consideration whether any justifiable reasons are there for such lowering down of the profit. Since, order of the ld.CIT(A) is totally silent on this aspect, and she has not discussed the submissions of the assessee, therefore, we deem it appropriate to set aside this issue to the file of the ld.CIT(A) for re-adjudication.
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