2013 (2) TMI 178

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.... difference amounting to Rs. 4,64,884, solely relying upon the observation in the annual audited account. In doing so, the hon'ble Income-tax Appellate Tribunal have erred in not recognizing that the assessee has failed to furnish details called for by the Assessing Officer in the course of the assessment proceedings. They failed to observe that there is no fetter on the powers of the Assessing Officer to require the assessee to justify the claim with reference to records, materials and evidence and that such power is inherent in the Assessing Officer in the scheme of the Act. In doing so, the hon'ble Income-tax Appellate Tribunal have erred in departing from the decision laid down in the case of Goodyear India Ltd. v. CIT [2000] 246 ITR 11....

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.... produced but, according to the learned counsel for the Revenue, in support of the audited accounts some vouchers were demanded by the Assessing Officer and those were not supplied. The Assessing Officer, therefore, disallowed the loss on account of foreign exchange difference amounting to Rs. 4,64,884 and in want of supporting documents disallowed the legal and professional charges amounting to Rs. 20,94,089. It is submitted that the Assessing Officer had jurisdiction to demand more documents than the audited accounts in a case of doubt and admittedly the respondent-assessee did not produce any supporting documents for the above two : (i) loss on account of foreign exchange difference amounting to Rs. 4,64,884, and (ii) expenditure incurre....

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....count and, therefore, set aside the order passed by the appellate authority and the Assessing Officer and directed the Assessing Officer to delete Rs. 4,64,884 which was wrongly disallowed in the assessment order. Learned counsel has also relied upon the judgment in the case of CIT v. HCL Comnet Systems and Services Ltd. reported in [2008] 305 ITR 409 (SC) ;  [2008] 174 Taxman 118 (SC). 5. We are of the considered opinion that before the lower authority the material was there and the Assessing Officer may not have satisfied himself from the audited accounts but at the same time, in the facts of this case, that was a reliable document as has been held by the Tribunal, therefore, it was the appreciation of the evidence by the Tribunal....