TMI Blog2013 (3) TMI 52X X X X Extracts X X X X X X X X Extracts X X X X ..... he provisions of section 145(1) could be invoked only when any defect is pointed out in the maintenance of books of account and other documents. Thus mere disclosure of a low net profit would not enable the AO to invoke the provisions of section 145(1) in all cases unless and until any defect has been pointed out in the maintenance of books of account otherwise, in the cases where the business ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rder of the Income Tax Appellate Tribunal, Lucknow: - "Whether on the facts and in the circumstances of the case, the Tribunal is justified in law in deleting the addition of Rs. 1,11,22,980/- made by the Assessing Officer on the ground that the net profit disclosed was much lesser than that shown in the previous year and after rejecting the books of account by invoking the provisions of section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er of Income Tax, Bareilly, who vide order dated 31.12.2009 had allowed the appeal and deleted the additions. The Commissioner of Income Tax (Appeals) Bareilly, has found that all statutory registers relating to purchases, use of stock and other expenses were maintained along with supporting bills and vouchers. The Assessing Officer did not challenge these books of account and no specific defect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the appeal. We have heard Sri Shambhu Chopra, learned senior standing counsel for the Revenue. Sri Chopra, learned counsel submitted that as the net profit disclosed by the assessee was too low, the Income Tax Officer was justified in invoking the provisions of section 145(1) of the Act and applying a net profit of 6%, which was disclosed by the other assessees in the same business. The submis ..... X X X X Extracts X X X X X X X X Extracts X X X X
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