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TMI Blog2016 (3) TMI 277X X X X Extracts X X X X X X X X Extracts X X X X ..... ase in quashing the invoking of section 145 of the I. T. Act and allowing the appeal of the assessee with regard to section 44AD. 2. Ld. CIT(A) erred in law and on the facts of the case in restricting the disallowance u/s 14A from Rs. 1,22,956/- to Rs. 73,850/-. 3. Ld. CIT(A) erred in law and on the facts of the case in quashing the rejection of bills of the suppliers." 2. Briefly stated, the facts of this case are: during the processing of return of income filed by the assessee for the Assessment Year 2008-09, the case was subjected to scrutiny and consequent upon the notices issued u/s 143(2) and 142(1) along with questionnaire, Shri Atul Puri, Authorized Representative for the assessee put in appearance, filed details, but has no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ore Ld. CIT(A) who has partly allowed the appeal. Feeling aggrieved, the Revenue has come up before the Tribunal by filing the present appeal. 5. We have heard both the authorized representatives, perused the material placed on record in the light of facts and circumstances of the case and orders of authorities below. 6. Ld. D.R. challenging the impugned order, contended inter alia that disallowance u/s 14A of the Act of trading additions have been rightly made by the Assessing Officer by rejecting the books of accounts whereas Ld. CIT(A) has erred in overturning the assessment order; that the bills furnished by the assessee have been examined and found to be bogus by the Assessing Officer but Ld. CIT(A) has erred in quashing the invoking ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the business of the assessee and the same were paid out of undisclosed sources of income; that rough/ kacha bills were not correlated with pacca bills and bank statement. 8.1 The Assessing Officer rejected the books of accounts of the assessee by discussing the plethora of judgement delivered by Hon'ble High Court and ITAT but the assessment order itself lacks reasoning for rejection of books of accounts except making following observations: "Although the present assessee is engaged in civil construction and where assessee is allegedly maintaining books of account and where the assessee has filed audited copy of account, the books of accounts are still not reliable and the same are rejected and section 44AD of the I.T. Act, 1961 i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hermore, when Ld. CIT(A) himself has categorically observed that sufficient opportunity of being heard has not been given to the appellant before invoking the provisions contained u/s 145 of the Act, it is surprising as to how the Ld. CIT(A) has proceeded with restricting disallowance u/s 14A from Rs. 1,22,956/- to Rs. 73,850/-. The operative part of the findings returned by Ld. CIT(A) is reproduced as under for ready reference: "The most important fact is that sufficient opportunity has not been given to the appellant before invoking s.145. The appellant is the business for long and has been consistently filing its return of income on the basis of audited accounts. The appellant has been following the mercantile system of accounting on t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee. 12. So, we are of the considered view that Ld. CIT(A) has erred in quashing the action taken by the Assessing Officer to invoke provisions contained u/s 145(2) of the Act without taking into account the admitted fact that the Assessing Officer has not provided sufficient opportunity of being heard to the assessee rather rejected the books of accounts arbitrarily and declared the bills filed by the assessee as bogus unilaterally. So, the impugned order passed by Ld. CIT(A) is not sustainable in the eyes of law and without entering into the merits of the case, the file is ordered to be restored to the Assessing Officer to decide afresh after providing opportunity of being heard to the assessee. 13. Order pronounced in the open co ..... X X X X Extracts X X X X X X X X Extracts X X X X
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