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2023 (6) TMI 440 - AT - Income TaxRejection of books of accounts - best judgement assessment - only objection raised by the AO is non-filing of the tax audit report - CIT- A deleting the addition - HELD THAT:- It is only a case where accounts were not correct or incomplete or method of accounting employed by the assessee is not such as to enable the AO to determine the income properly then can resort to the provisions of section 145(3) or 144 of the Act. In the absence of any major discrepancies or defects in the books of accounts the rejection of the books of account only for want of tax audit report is not justified. AO while computing the total income has rejected the claim of loss for want of tax audit report and other details and even refused to entertain the CA for want of power of attorney though the reply along with balance sheet and other details as well as statutory audit report were filed before the AO. AO even did not allow the brought forward loss which were allowed in the preceding year to be carry forward and therefore, it shows that the AO has passed the assessment order by ignoring the undisputed facts available before him and rather contrary to the fact so far as the brought forward loss of Rs. 2.55 crores which was subsequently accepted by the AO in the remand proceedings. Assessee stated that it has produced books of account along with vouchers and when the AO has not considered the books of account and vouchers but rejected the books of account of the assessee the same were produced before the ld. CIT(A) and therefore, there is no violation of Rule 46A of the Income Tax Rules. CIT(A) has confirmed these facts while passing impugned order that the record was brought before the AO but it was not considered. Thus, AO misconducted himself while passing the assessment order and therefore, the record which was already filed before the AO was rightly considering by the CIT(A) while passing the impugned order. No error or illegality in the impugned order of the Ld. CIT(A) same is upheld. Decided in favour of assessee.
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