TMI Blog2010 (5) TMI 679X X X X Extracts X X X X X X X X Extracts X X X X ..... quashing/setting aside the assessment order of learned Assessing Officer as the assessee having been wrongly selected under compulsory scrutiny norms the order of the learned Assessing Officer is void ab initio. ( b )In any view of the matter and in any case the action of learned CIT(A) in not completely setting aside the order of the learned Assessing Officer is bad in law, unjustified, arbitrary and against the facts and circumstances of the case. 2. Regarding addition of Rs. 13,29,206 on account of salary and interest of (Rs. 1,20,000 and Rs. 9,50,809 respectively). ( a )That having regard to facts and circumstances of the case the learned CIT(A) has erred in law and on facts in not allowing salary and interest paid to partners o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in dispute may be allowed to the assessee. 4. On the contrary, the learned Departmental Representative relied upon the order passed by the learned first appellate authority and also filed written submissions, which are reproduced as under : "It is submitted that in this case assessment was made by invoking the provisions of section 144 on account of, inter alia, assessee s failure to file any reply to the questionnaire issued under section 142(1) of the Income-tax Act, 1961 and resultantly, the assessee was denied deduction on account of salary and interest paid to partners as per the provisions of section 184(5) of the Income-tax Act, 1961. Since section 184(5) clearly mandates that no deduction on account of any payment of inter ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... been held that non-compliance of notices attracted the provisions of section 184(5). In the assessee s case, there has been repeated failure of the assessee to comply with the several notices issued. So, it richly attracts provisions of section 184(5). As regards the first ground of the appeal, the same is covered against the assessee as per para 15 of the Hon ble Bench decision in the case of Reshi Construction Co. ( supra ). In view of above, it is prayed that the appeal of the assessee may kindly be dismissed." 5. We have heard both the parties and perused the relevant records available with us, especially, the order passed by this Bench in the case of the Reshi Construction Co. ( supra ). The relevant portion of the said or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er, the original default committed under section 142 is washed off. The learned first appellate authority has also considered the submissions of die assessee, especially the remand report given by the Assessing Officer but he held that original default under section 142 remained intact even if the assessee later on produces books of accounts before the learned CIT(A) or any other authority including the Assessing Officer. We are of the considered opinion that this observation of the learned first appellate authority is wrong because when the assessee has produced the books of account before the learned first appellate authority or before the Assessing Officer in a remanded proceeding, the original default under section 142 does not remain i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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