2013 (9) TMI 687

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....ered by Hon. Dr. Satish Chandra, J) Both the appeals have been filed by the Department under Section 260A of the Income-Tax Act, 1961, against the common judgment and order dated 27.06.2008, passed by the Income Tax Appellate Tribunal, Lucknow in I.T.A. Nos.290 and 291/Luc/2008, for the assessment years 2003-04 and 2004-05. On 10.12.2008, a Coordinate Bench of this Court has admitted the app....

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....hout the Assessing Officer first rejecting the books of account was not sustainable." The brief facts of the case are that the assessee is a registered society under the Society Registration Act w.e.f. 01.04.1996. The benefit under Section 12-A of the Income Tax Act was extended to the assessee. However, during the assessment years under consideration, the A.O. noticed that the assessee has con....

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....he DVO vide report dated 09.03.2006 estimated the cost of construction. The difference of the amount was treated as unexplained investment. The appellate authorities have wrongly deleted the additions by observing that the provision of Section 40-A (3) do not apply as the assessee society is exempted under Section 11 of the Income Tax Act. He submits that the A.O. has denied the said benefit and m....

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....ed in its order that the A.O. has not specifically rejected the books of account and never pointed out any defects. The assessee submitted the books of account, vouchers, bills of building accounts which were duly examined by the A.O. with due application of mind and the same were never rejected. The reference to the DVO without rejecting the books of account is not desirable. The Tribunal is a fi....