TaxTMI 
TaxTMI 
2019 (1) TMI 1125
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....) erred in reversing the Assessing Officers stand of rejecting the books of accounts when the Ld.CIT(A) himself has justified the action of the Assessing Officer in making a best judged assessment." 3) "Whether on the facts and in the circumstances of the case and in law, the Ld.CIT(A) erred in deleting the disallowance made on account of operation and administrative expenses without appreciating that the assessee failed to produce the details and documents at the assessment and appellate proceedings and that these expenses remain unverified." 4) The appellant prays that the order of the CIT(A) on the above grounds be set aside and that of the Assessing Officer be restored. 3. The grounds of appeal raised by the assessee in cross objection reads as under: 1. On the basis of circumstances of facts and in law, the learned Commissioner of Income Tax (Appeals) ['CIT(A)'] / learned Assessing Officer erred in upholding/making best judgment assessment despite the fact that the assessee duly complied with the notices, submitted the relevant information and attended the scheduled hearings before the learned A.O. during the course of assessment proceedings. 4....
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....office of AO till the date of passing of the order. 7. The AO after placing reliance on CIT Vs Rayala Corporation (P) Ltd. (Mad) 215 ITR 883, Kachwala Gems Vs JOT (SC) 288 ITR10, CIT Vs P.P. Khader Haji (Ker) 234 ITR 461, Swadeshi Polytex Ltd. Vs ITO (All) 127 ITR 287, Pawan Kumar Pareek Vs ITO 2010-TIOL-718-HC-RAJ-IT and CWT Vs Motor and General Finance Ltd. (Del) 332 ITR 1, passed the order u/s. 144. While doing so the Ld. AO also rejected the books of account of the appellant and stated that the Assessing Officer can reject the books of accounts of the assessee within the meaning of the section 145(3) of the IT Act, 1961. Genuine efforts were put forth by the office but it was observed from the records that the assessee company did not cooperate with the AO so as to enable him to complete the assessment. Despite the fact that the assessee company was given sufficient opportunity of being heard the assessee was reluctant to give the necessary details needed to complete the process of scrutiny assessment proceedings. Hence, the assessment is completed exparte on the basis of materials available on record and for non production of various documents, the books of accounts of t....
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....re on record, the A.O. should have examined and sought further clarification, which he never did. Hence, the ld. CIT(A) sought report from the A.O. The A.O. submitted that the additional evidence produced by the assessee should not be admitted. Further, the A.O. submitted a disregarding non compliance by the assessee. The assessee further submitted before the ld. CIT(A) that the assessee is a Private Limited Company and it is engaged in the business of managing first class, full service international hotels under the Marriott brands. It was stated that the notices issued u/s. 143(2) and 142(1). The assessee was requested to produce various details on or before 14.08.2010. That the assessee submitted the preliminary details, i.e., the audited financial statements, tax audit report, transfer pricing report and the return on 16.08.2010. Further, it was submitted that some further details were sought by the A.O. which were duly complied on 12.07.2012. Thereafter, again the A.O. issued notice dated 10.08.2012 requiring certain information. That since the details sought were substantially the same as submitted on July, 2012, no additional evidences were submitted. That on the designated ....
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....e assessee contended that the A.O. should not have visited the books of account without pointing out any defect in the accounts and without considering that the assessee has complied with all. The ld. CIT(A) considered the assessee's plea and proceeded to expound upon the term depending upon the law relating to satisfaction of books of account. Thereafter, the held as under, accepting the assessee's pleading that there was no merit in the action of the A.O. in rejecting the audited accounts. 11. Thereafter, the ld. CIT(A) further made various observations that the A.O. made the disallowance without proper examination and proceeded to delete all the disallowances without any reference whatsoever to the actual facts and the books of account of the assessee. 12. Against the above order, the assessee and the Revenue are in cross appeal before us. 13. The ld. Counsel of the assessee has sought to file some additional evidence in the shape of email correspondence between the staff of the assessee, which showed that there was attendance on a specific day by the assessee's ld. Authorized Representative before the A.O. 14. Upon hearing both the counsel and perusing the records, ....