2011 (3) TMI 1792

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... confirming the assessment order framed u/s 143(3) of the Income tax Act, 1961 without considering the various details/ confirmations/ documents filed during the course of the assessment proceedings. 2. That without prejudice to the generality of the grounds of appeal no. 1 above, the learned CIT(A) has erred in upholding the action of the Income Tax Officer Ward 3(4), New Delhi in including the following sums in the total income. i) Manufacturing Expenses  10,82,855.00 ii) Share capital  76,64,220.00 iii) Unsecured loans 1,45,97,008.00 iv) Current liabilities  80,25,039.00 v) Personal expenses  26,70,748.00 vi) Finance charges  8,11,706.00 vii) Ad....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....nufacturing expenses; share capital; unsecured loans; current liabilities; personal expenses; finance charges; administrative, selling & distribution expenses; and additions in fixed assets were added back to the loss declared. As a result, the loss declared by the assessee was taxed at an income of Rs. 1,66,12,001/-. 2.2. Against the aforesaid order, assessee preferred appeal before the CIT(A) where it was contended that assessee was having books of account and record which were produced before AO and there was no justification in disallowing all the expenses, adding share capital and various other heads to the income of the assessee on an arbitrary and ad hoc basis. The CIT(A) vide impugned order allowed part relief. Against the susten....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... that the finding of lower authorities that books of account were not maintained, is not correct, as assessee is willing to produce the books of account before ITAT also. Further, we find merit in the argument of learned counsel that even in a case of best judgment assessment, in absence of accounts and record the AO cannot adopt an arbitrary and ad hoc approach. The assessee being regularly assessed to tax, its earlier and subsequent record will be there and a best judgment assessment could have been properly made on that basis. We see no justification in summarily disallowing the entire manufacturing, administrative, selling & finance charges and further adding back share capital, unsecured loans, current liabilities and addition to fixed....