TMI Blog1997 (5) TMI 429X X X X Extracts X X X X X X X X Extracts X X X X ..... ecting the gross profit rate declared without pointing any specific mistake in the assessee's accounts. The learned Departmental Representative, on the other hand, has relied on the orders of the lower authorities. 3. We have considered the rival submissions. Under the Income-tax Act assessment of a person can be framed under section 143(3) or under section 144 or under section 147 or under section 145 r/w section 144. An assessment under section 143(3) is to be completed on the basis of materials available with the Assessing Officer whereas an assessment under section 144 is an ex parte assessment but the Assessing Officer has power to estimate the assessee's income to the best of knowledge. An assessment under section 147 is th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uty to carry on proper investigation and verification from such books of accounts and must call for any other explanation or evidence if so required. After production of books of account and submissions of the explanation by the assessee if any asked for with respect to the contents of the return and books of account, the Revenue may accept the same or after pointing out the specific defects may reject the books of account and proceed to determine the assessee's income as per the provisions of section 145. 5. Income-tax provisions nowhere either authorise the Assessing Officer or cast an obligation on the assessee to prove a negative result, i.e., to prove as to why he failed to make the profit at a particular rate. 6. In business ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 's case is concerned it is noticed that the assessee's books of accounts have been rejected absolutely on the basis of low profit rate without pointing out any specific defect in the assessee's books of account which is contrary to the legal and settled principles of law. The action of the lower authorities is held to be bad in law and the addition in this account is deleted. 8. Ground No. 2 : Addition made on account of rejected rough diamond_Rs. 6,038. We have heard the learned counsel for the assessee as well as the learned Departmental Representative in the matter. After going through the orders of lower authorities it is noticed that the Assessing Officer has added a sum of ₹ 60,386 which the assessee had challenge ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e heard the learned counsel for the assessee as well as the learned Departmental Representative in the matter. The assessee's counsel has submitted that the disallowances on account of tea and coffee expenses, conveyance charges and out of telephone and telex expenses have been made on ad hoc basis on conjuctures and surmises as nothing has been brought against the assessee to prove that there was some personal use of those expenses. The learned Departmental Representative on the other hand, has supported the order of the Assessing Officer. We have considered the rival submissions and have gone through the order of the Commissioner (Appeals). The Commissioner (Appeals) in para 7 of his order has upheld the disallowances made by the Asse ..... X X X X Extracts X X X X X X X X Extracts X X X X
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