2005 (6) TMI 222

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....lowing effective ground: "Action of the learned CIT(A) is arbitrary, unjustified and against the canon of justice- (a) by confirming the addition of Rs. 26,845 against a loss of Rs. 5,245 declared in jeep account, when no specific deficiency in accounting have been pointed out." 2. Brief facts of the case are that in this case return had been filed on 21st Sept., 1997 declaring total inco....

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....ct, he made an addition of Rs. 26,845 to the total income declared by the assessee. In first appeal. the CIT(A) confirmed the action of the AO. 3. Before us, learned Authorised Representative for the assessee submitted that the assessee was maintaining books of account. The transaction with VIWA was genuine and invoking the provisions under s. 44AE(2) was not correct. He submitted that the CIT(....

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....he AO is justified in invoking the provisions of s. 44AE in the appellant's case. This action of the AO is confirmed." Learned Departmental Representative for the Revenue, on the other hand, relied on the orders of tax authorities. 4. After hearing the parties to the dispute and perusing the material available on record, we find from the observations made in the impugned order, extracted abo....

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....-ss. (1) and (2), and thereupon the AO shall proceed to make an assessment of the total income or loss of the assessee and determine the sum payable by the assessee on the basis of assessment made under sub-s. (3) of s. 143." From the above, it is seen that it clearly stipulates that the assessee is entitled for declaration of lower profit in case he maintained books of account. In the instant ....