Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2022 (5) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (5) TMI 439 - AT - Income TaxRejection of books of accounts - substantially increase in the expenses - CIT-A deleting the addition on account of estimated income and other income in addition to the returned income - HELD THAT:- The appellant is a wholly owned subsidiary of a US entity and its books of accounts are duly audited. In the assessment year 2013-14 & 2014-15, the AO accepted the books results of the appellant in the assessment u/s 143(3) of the Act. The only reason which has been given by AO that there was substantially increase in the expenses, is not itself sufficient to reject the claim of the assessee. No specific reason of any kind was recorded. There is nothing on the file to which it can be assumed that on which grounds the books of account are not acceptable. CIT(A) asked the remand report from the AO but there was no plausible explanation to reject the claim of the assessee. The appellant had entered into an Advance Pricing Agreement (APA) with the Central Board of Direct Taxes for its transactions with associate Enterprises and this year is one of the rollback year in the APA already signed. The books of accounts and the financial result of appellant have already been examined and accepted that the APA. Nothing came into noticed to which it can be assumed that the finding of the CIT(A) is incorrect. The facts are not distinguishable at this stage. The finding no plausible explanation to interfere with the finding of the CIT(A), we are of the view that the finding of the CIT(A) is quite correct which is not liable to be interfered with at this appellate stage - Decided against revenue.
|