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2016 (3) TMI 277 - ITAT DELHI

2016 (3) TMI 277 - ITAT DELHI - TMI - Rejection of books of accounts - denial of natural justice - Held that:- In view of the cryptic findings returned by the Assessing Officer rejecting the books of accounts and finding returned by Ld. CIT(A) referred to above, we are of the considered view that the opportunity of being heard has not been granted to the assessee by the Assessing Officer before rejecting the books of accounts. Even otherwise, the bills submitted by the assessee during assessment .....

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hat 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. - I.T.A. No.859/ .....

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CIT(A) erred in law and on the facts of the case 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 ₹ 1,22,956/- to ₹ 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 re .....

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but still neither the bank statements were produced nor any bills and vouchers produced in original. Thus, the assessee failed to discharge its onus to prove various expenses claimed by it. Photocopies of some of the bills of major expenses exceeding ₹ 50,00,000/- filed by the assessee found to be not paid during the Assessment Year under consideration as the same were not bearing stamp nor do they bear cheque number and date and as such, Assessing Officer came to the conclusion that sinc .....

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u/s 44AD of the Act, estimated gross profit (G.P.) @ 8%. The Assessing Officer has also disallowed the dividend income of ₹ 73,850/- on the ground that it does not make part of the total income and thereby assessed the net taxable income at ₹ 14,52,17,838/-. 4. The assessee carried the matter before 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 representat .....

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Officer but Ld. CIT(A) has erred in quashing the invoking of section 145 of the I.T. Act, 1961 and restricting the disallowance from ₹ 1,22,956/- to ₹ 73,850/- u/s 14A. 7. However, on the other hand, Ld. A.R. repelled the arguments addressed by the Ld. D.R. by contending inter alia that the assessee has produced all the relevant bills vide letter dated 16.09.2010, which have been arbitrarily rejected by the Assessing Officer; that since the payment was made in advance so, cheque numb .....

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i.e. Shuttering, cement, aluminium, brick, paint, steel, timber etc. despite the comprehensive facts elaborated by the Assessing Officer inter alia that there is no mention of payment mode; that the bills have not been stamped and there is no mention of mode of payment i.e. details of cheque, bank account and date has not been mentioned; that the amount of said bills have also not been tallied with the lists of sundry creditors but found to be not tallied; that the assessee has failed to prove t .....

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ing 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 is invoked and gross profit is estimated at 8%. 9. Now, adverting to the impugned order, Ld. CIT(A) has made the following observations on the rejection of books of accounts, relied upon by .....

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ch could lead to conclude that the books of accounts were unreliable and the correct profit could· not be deducted thereupon. It is seen from the record that the a/c on computer were produced before the A.O. as per the order it is stated that the complete print outs were not produced. The AO has stated that photocopies of some bills were produced and gave instances of some bills amounting to ₹ 93,87,310/- where he has stated that the bills were not paid because it does not show stam .....

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f the Act, it is surprising as to how the Ld. CIT(A) has proceeded with restricting disallowance u/s 14A from ₹ 1,22,956/- to ₹ 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 app .....

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