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2018 (1) TMI 1039 - AT - Income TaxRejecting the Books of Accounts u/s. 145(2) - addition by estimating the Gross Profit - contention of the assessee is that it is maintaining the Books of Accounts mostly in the electronic form - Held that:- Simply because the books were not produced in physical Form the same cannot be rejected especially when the books were audited and the assessee is a limited company. Therefore, taking the totality of facts and circumstances into consideration, we are of the considered view that this issue is to be restored to the file of the Assessing Officer and the assessee should be given one more opportunity to produce the Books of Accounts before the Assessing Officer to substantiate its claim for the loss incurred during the current Assessment Year. Thus we set-aside this issue to the file of the Assessing Officer who shall examine afresh in accordance with the law after providing adequate opportunity of being heard to the assessee. This ground is allowed for statistical purpose. Disallowing finance expenses - Held that:- all the charges appears to have been paid towards regular Bank Charges, Interest, Overdue Interest on PEC LC, Bank LC charges etc., and it appears that none of these charges relates to any interest on borrowals. In such circumstances there should not have been any disallowance by the Assessing Officer. Therefore, we are of the view that the Assessing Officer shall examine this issue with reference to the submissions made by the Ld. Counsel for the assessee and therefore we set-aside this issue to the file of the Assessing Officer for adjudicating this issue in accordance with the law after providing adequate opportunity of being heard to the assessee. This ground is allowed for statistical purpose. Investment made in land as unexplained investment u/s. 69 - Held that:- In the case on hand the Assessing Officer without examining the Books of Accounts properly and without giving a finding that the transactions occurred outside the Books of Accounts invoked provisions of section 69C of the Act. We also find that the transaction happened in the Financial Year 2007-2008 relevant to the Assessment Year 2008-09 as the sale agreement entered into is in the Financial Year 2007-08 and in such circumstances, whether the addition can be made in the Assessment Year 2009-10 is also not examined by the Assessing Officer. The contention of the assessee is that, assessee company owes money to Shri G. Eswara Rao who is the Father-in-Law of one of the Directors and Shri G. Eswar Rao sold certain shares to the vendors and this resulted in transferring the lands in the name of the assessee company for discharging the liability of Shri G. Eswara Rao by the company in its Books of Accounts. This aspect has not been examined by the Assessing Officer or by the Ld.CIT(A)- we are of the considered opinion that this issue is to be examined afresh by the Assessing Officer This ground is allowed for statistical purpose.
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