TMI Blog2022 (12) TMI 217X X X X Extracts X X X X X X X X Extracts X X X X ..... tion 144 of the Act and passed the Best Judgment Assessment and the said action of the A.O. cannot be found fault with. Assessee has vehemently submitted that he has sent an e-mail to the A.O. comprising of 2000 pages attaching all the documents regarding turnover/sales etc of the share transaction which has not been verified by the A.O. But the said fact cannot be corroborated with any of the documents on record and even before us the assessee has not produced any such documents to verify. We are of the considered opinion that if the matter is remanded to the file of A.O. to verify the documents produced by the Assessee and passed appropriate fresh Assessment order after hearing the assessee, the substantial justice would be rendered ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... learly envisaged as, 144(3) When an assessee after filing a return fails to comply with the terms of a notice as given in section 143 (2) for production of evidence or documents. The Ld. CIT(A)- 20 has also not considered the same while passing the Appellate order u/s 250 of the Act. 3. THAT on the opening of the assessment order the Ld. AO alleges that- 'notice u/s 142(1) was issued on 04/09/2018 fixing the date of hearing on 13/09/2018. Neither anybody attended nor any reply was filed by the assessee in response to the notice'. Whereas, the counsel of the assessee Sh. Sameer Malhotra, Advocate appeared and was told by the Ld. AO to file a letter for opting for manual assessment, which the Ld. AO is confirming in PARA 3, that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an ad-hoc percentage. There is no scientific basis or any method to help in assuming and estimating the percentage. Thus, the method applied is completely arbitrary. The assessee has made no transactions related to securities/equity on 'Inter-day' basis during the year under appeal. No element of share trading in the bank statements filed during assessment proceedings. The share brokerage company has made intraday share trading only. Although the portfolio from M/s Bonanza Portfolio Limited denotes a loss of Rs. 2,35,389/- during the year, copy of which was filed during assessment proceeding vide letter dated 02/11/2018. The assessee has not taken credit for the said loss mentioned above, in the return of income, which is evident f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng the appellate order. 3. Brief facts of the case are that, the return of income declaring income of Rs. 77,66,460/-was filed by the assessee. The case of the assessee was selected for limited scrutiny and a notice u/s 143(2) of the Act was issued. During the course of assessment proceedings the representative of the assessee has participated and ultimately the assessment order u/s 144 of the Act came to be passed by the A.O. by making an addition of Rs. 3,72,718/-. 4. As against the assessment order dated 23/12/2018 passed u/s 144 of the Act, the assessee has preferred an appeal before the CIT(A). The Ld.CIT(A) has dismissed the appeal vide order dated 31/10/2019. 5. Aggrieved by the order dated 31/10/2019, the assessee has pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ficer can pass Best Judgment Assessment u/s 144 of the Act?. For the ready reference the Section 144 of the Act is reproduced hereunder:- 144. Best judgment assessment (1) 1 ] If any person- (a) fails to make the return required 2 under sub- section (1) of section 139] and has not made a return or a revised return under subsection (4) or sub- section (5) of that section,] or (b) fails to comply with all the terms of a notice issued under subsection (1) of section 142 3 or fails to comply with a direction issued under sub- section (2A) of that section], or (c) having made a return, fails to comply with all the terms of a notice issued under sub- section (2) of section 143, the 4 Assessing] Officer, after taking i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... regarding the share turnover/sales. The Ld. A.O. has asked the assessee to file remaining information/details on 02/11/2018. On 02/11/2018, again a part reply has been filed. The Ld. A.O. has once again asked the representative of the assessee to file remaining reply and ultimately on 20/12/2018 the representative of the assessee stated that share broker is not providing any information regarding turnover/sales etc., thus it cannot be submitted . Since the assessee has submitted his inability to produce the details and has not filed the details sought by the A.O., the Ld. A.O rightly invoked the Section 144 of the Act and passed the Best Judgment Assessment and the said action of the A.O. cannot be found fault with. 10. The Ld. Counsel ..... X X X X Extracts X X X X X X X X Extracts X X X X
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