TMI Blog2013 (11) TMI 133X X X X Extracts X X X X X X X X Extracts X X X X ..... The accounts which are regularly maintained in the course of business should normally be taken as correct - The onus is upon the Revenue to show that either the books of account maintained by the assessee were incorrect or incomplete or that the method of accounting adopted by him was such that true profits of the assessee cannot be deduced therefrom – Decided against Revenue. - ITA No. 1406/Del/2012 - - - Dated:- 28-9-2012 - Order The order of the Bench was delivered by S. V. Mehrotra (Accountant Member).-This appeal filed by the Department is directed against the order of the learned Commissioner of Income-tax (Appeals) dated January 5, 2012 for the assessment year 2007-08. The assessee, in the relevant assessment year, was manuf ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 00), the Assessing Officer determined the taxable income at Rs. 20,23,780. Before the learned Commissioner of Income-tax (Appeals), the assessee had filed written submissions which have been summarised by the learned Commissioner of Income-tax (Appeals) at page 3 of his order as under: "Assessment is made in contravention of section 145(3). The assessee was never asked to produce books of account. No comparable study has been done. No specific defects were pointed out. No empirical evidence was in possession of the Assessing Officer against the appellant." The learned Commissioner of Income-tax (Appeals) deleted the addition observing as under : "After careful consideration of the facts of the case, the Assessing Officer has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessment proceedings but did not call for books of account. He further referred to page 15 of paper book, wherein extracts from Manual of Office Procedure, Volume-II (Technical), February, 2003, issued by the Directorate of Income-tax (Organisation and Management Services), Central Board of Direct Taxes, Department of Revenue, Government of India is contained. He pointed out that it has specifically been provided in the assessment procedure that the Assessing Officer is to call for the books of account. He submitted that the Assessing Officer's failure to call for the books of account cannot be used for extending limitation. Learned counsel further referred to page 63 onwards of the paper book to demonstrate that it had submitted copies ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee have shown the lower net profit rate. During the assessment year under consideration, no other defect was mentioned. It may also be mentioned that the lower profit shown by the assessee by itself cannot be a ground for rejection of the books of account results, as per the ratio laid down in the following cases : 1. S. N. Namasivayam Chettiar v. CIT [1960] 38 ITR 579 (SC): 2. Pandit Bros. v. CIT [1954] 26 ITR 159 (Punj); 3. S. Veeriah Reddiar v. CIT [1960] 38 ITR 152 (Ker): 4. International Forest Co. v. CIT [1975] 101 ITR 721 (J K)." Similar view has been taken in following cases : "(1) Aluminium Industries P. Ltd. v. CIT [1995] 80 Taxman 184 (Gauhati) (2) CIT v. Paradise Holidays [2010] 325 ITR 13 (Delhi). In this c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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