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2019 (7) TMI 697 - AT - Income TaxBest judgment assessment u/s 144 - non-compliance to notices u/s.142(1) - disallowance of interest and salary paid to the partners by taking support of provisions of section 184(5) - HELD THAT:- A.R. in all fairness, accepted that in compliance to notice u/s.142(1), the assessee only submitted bank statement and did not submit audit report for the current year and past two years alongwith complete names and address of sundry creditors and sundry debtors. AO also issued another notice u/s.142(1) on 5.2.2015, which was duly served on the assessee but there was no compliance by the assessee. From para 4.3 of the assessment order, AO has categorically noted that after several notices u/s.142(1) a show cause notice dated 5.2.2015 alongwith another notice u/s.142(1) was intimated/served on the assessee informing that failure to produce audit report and books of account, the case shall be disposed of by invoking the provisions of section 145(3) AO has reproduced the contents of show cause notice. Thereafter, the AO further noted that the assessee has also failed to comply with the terms of notice u/s.142(1) of the act i.e. dated 5.2.2015. Hence, the assessment should be framed by invoking the provisions of section 144 of the Act - Thus on non-compliance to notice u/s.142(1) dated 5.2.2015 of the Act by the assessee Assessing Officer was compelled to take recourse of provisions of section 144 in framing assessment under best judgement assessment. Assessing Officer was right in framing assessment order u/s.144 and in denying allowance of interest and salary paid to the partners by taking support of provisions of section 184(5). Hence, the sole ground of the assessee being devoid of merits is dismissed. - Decided against assessee.
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