TMI Blog2022 (5) TMI 1216X X X X Extracts X X X X X X X X Extracts X X X X ..... er authorities needs set aside. Hence, the orders of lower authorities are set aside and matter remanded back to the file of the AO for making assessment on the basis of books of account. Accordingly, the AO will reframe the assessment after allowing reasonable opportunity of being hearing to the assessee. Appeal of the assessee is allowed for statistical purpose. - ITA No. 51/CHNY/2019 - - - Dated:- 27-4-2022 - Mahavir Singh , Vice President And G. Manjunatha , Member ( A ) For the Appellant : Party-in-Person For the Respondents : P. Muthushankar , Addl. CIT ORDER Per Mahavir Singh , VP This appeal by the assessee is arising out of the order of Commissioner of Income Tax (Appeals)-12, Chennai in ITA No. 139/CIT(A) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0/-. Aggrieved, assessee preferred appeal before CIT(A). The CIT(A) also confirmed the action of AO by observing in para 5.1 as under:- 5.1 The appellant has reiterated the submissions raised before the AO. The appellant has not maintained books of accounts. The turnover of the appellant was below Rs. 1 crore. In such circumstances, the only option before the AO is to apply the provisions of Section 44AD. Had the appellant produced books of accounts, there was no necessity to assess the deemed income. The appellant has declared in his return that he is not liable for maintaining and auditing books of accounts. 3.1. In view of the above, the assessee stated once he has maintained books of account and produced before the AO during t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be required to keep and maintain such books of account and other documents as required under sub-section (2) of section 44AA and get them audited and furnish a report of such audit as required under section 44AB. 5.1. From the above provision, it is clear that the assessee can declare lower profit also in case the assessee has maintained books of account and in this case, as claimed by the assessee before Bench that he has maintained books of account, in that eventuality we are of the view that the orders of lower authorities needs set aside. Hence, the orders of lower authorities are set aside and matter remanded back to the file of the AO for making assessment on the basis of books of account. Accordingly, the AO will reframe the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X
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