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2023 (8) TMI 374 - AT - Income TaxRejection of books of account u/s 145(3) - Non maintenance for the foreign projects - maintenance of accounts by certain persons carrying on profession or business u/s 44AA - assessee is not eligible to claim depreciation @ 60% on survey equipments - assessee has failed to produce its books of accounts, bills and vouchers and relevant documents in relation to its foreign projects & therefore the Balance Sheet of the assessee company does not represent true and fair picture of the affairs HELD THAT:- The assessee is duty bound to maintain books of account and same shall be produced before the A.O. so as to deduce the result of the assessee business, irrespective of the business made in foreign country or otherwise. The observation of the CIT(A) contrary to the above provisions of the Act i.e. Section 44AA and Section 145 of the Act. Hence, in our opinion, the CIT(A) is not justified in deleting the addition. AO had made addition in view of non maintenance of books of account, however, we are of the opinion that the assessee is entitled for depreciation at the prescribed rate in the provisions. Accordingly, we direct the A.O. to estimate the income of the assessee at 10% and grant the applicable rate of depreciation on fixed assets and re-compute the income of the assessee. Appeal of the assessee is partly allowed for statistical purpose.
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