TMI Blog2014 (11) TMI 182X X X X Extracts X X X X X X X X Extracts X X X X ..... – thus, no substantial question of law arises for consideration – Decided against revenue. Rejection of books of accounts – opportunity of being heard not provided - Satisfaction about correctness or completeness of the Account properly recorded or not - Held that:- The tribunal rightly held that before the AO records satisfaction about the correctness or completeness of the accounts of the assessee, he ought to have given proper opportunity to the assessee - The books of account could not have been rejected casually - It was not done by giving proper opportunity to the assessee - without examining the basic parameters for rejection of the books of accounts the revenue goes in appeal before the tribunal, this is what is faulted by the t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d out the disallowance of ₹ 1,05,670/- applying Rule 8D of the Income Tax Rules. The argument of assessee was that there was no expenditure in earning this exempted income. The Commissioner of Income Tax (Appeals) confirmed this addition. The tribunal has found that there was interest applicable on the dividend earned and only administrative expenditure was incurred and that was estimated at 5% of the dividend earned. It was found to be reasonable in the given facts and circumstances that we are of the opinion that the judgment of this Court has been followed and correctly applied. The question (d) is not substantial question of law. 5. In relation to three other questions, the argument is common. It is that by section 145 of the I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of. However, the assessing officer made addition of gross profit and that was a matter clarified by the assessee in this Affidavit. The Commissioner of Income Tax has not uphold this gross profit addition. The comparison by the assessing officer and by looking at the very document, namely, the profit and loss account was improper. The merits of addition have been gone into in paragraphs 5 and 6 of the impugned order. The tribunal has termed the approach of assessing officer as unfortunate. It is termed as arbitrary, high handed and cannot be sustained. Without examining the basic parameters for rejection of the books of accounts the revenue goes in appeal before the tribunal, this is what is faulted by the tribunal. To our mind, the complai ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
