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2015 (2) TMI 526 - AT - Income TaxEstimation of the net profit - results as reflected in the accounts which had been subjected to tax audit u/s 44AB ignored - rejection of books of accounts - Held that:- The assessee’s income from operational activities and other income have been estimated by the AO as well as Ld.CIT(A), after rejecting the book results on the ground that statutory audit has not been completed. The reasons given by the assessee was that, the audit was to be carried out by the Comptroller & Auditor General of India and such an audit was completed only up to A.Y. 2004-05 at the time of assessment. There is no other authority who can carry out statutory audit in case of assessee. The assessee has appointed his own chartered accountants for obtaining tax audit u/s 44AB and provisional balance sheet & P&L Account, which were filed before the AO. Now that the statutory audit report is available for the relevant financial year, we are of the opinion that such an evidence is to be admitted and this issue should be restored back to the file of the AO to be consider the statutory audit report and complete the assessment afresh taking into account such report. - Decided in favour of assessee for statistical purposes. Taxability of interest - Held that:- Ld. Counsel has filed on office memorandum dated 04.01.2014, issued by the Government of Maharashtra clarifying that interest on the utilized grant is to be characterized as part of grant-in-aid only. Such a letter/memorandum has a vital bearing on the issue involved, therefore, we admit the said additional ground and remit the matter back to the assessing officer to take cognizance of such an evidence - Decided in favour of assessee for statistical purposes.
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