TMI Blog2006 (1) TMI 58X X X X Extracts X X X X X X X X Extracts X X X X ..... The books of account or any other material produced before the Assessing Officer by the assessee were simply meant to support the disclosure of profit or loss set out in its return and it was always open to the Assessing Officer to scrutinise such material or entries in the books of account before accepting the same for the purpose of assessment. There is, thus, no merit in the contention on behalf of the assessee that the Assessing Officer could not have disregarded the two entries pertaining to loss-making transactions while accepting the other two entries in the books of account relating to the profit-making transactions. The Tribunal was, in the circumstances, justified in repelling the contention so raised. - IT APPEAL NO. 90 OF 2004 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der and directed the Assessing Officer to decide the matter afresh after affording a reasonable opportunity of being heard to the assessee. Pursuant to such direction, the matter again came up before the Assessing Officer, who required the assessee to furnish certain information, as detailed in his order dated December 9,1994. That apart, the assessee was also required to produce its books of account along with the stock register. The assessee failed to furnish all the information required by the Assessing Officer, but produced its books of account. On consideration of the entire material, including account books, the Assessing Officer held the loss-making transactions as bogus ones and, accordingly, the loss of Rs. 86.11 lakhs was once aga ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... shall not be entitled to produce before the first appellate authority any evidence whether oral or documentary other than the evidence produced by him during the course of the assessment proceedings. Four exceptions have been carved out to this rule and we find that the case of the assessee does not fall in any of these. In view of this fact, we hold that the learned Commissioner of Income-tax (Appeals) was not entitled to consider any additional evidence during the course of the first appellate proceedings. When the Assessing Officer specifically required the assessee to produce certain evidence and despite several opportunities granted by him there is no compliance on behalf of the assessee the natural corollary that follows is that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nvisaged under section 144, in a case where he is not satisfied about the correctness or completeness of the accounts of the assessee or where the method of accounting provided in sub-section (1) or accounting standards as notified under sub-section (2) have not been regularly followed by the assessee. In the present case, we are not concerned with the latter situation. Clearly, it is only in the eventuality of the Assessing Officer not being satisfied about the correctness or completeness of the accounts of the assessee that he can exercise his discretion of making the assessment based on best of his judgment. Conversely, therefore, where the Assessing Officer is satisfied about the correctness of entries relating to the profit-making tran ..... X X X X Extracts X X X X X X X X Extracts X X X X
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