2020 (9) TMI 966

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....d. 2. With the consent of both the learned representative(s) and in view of the Revenue's averments in its condonation petition / affidavit dated 20.02.2020, we condone the impugned delay of eleven days' in filing the case. The case is now taken up for adjudication on merits. 3. The Revenue's first and foremost substantive grievance pleads that the CIT(A) has erred in law and on facts in deleting the sec. 68 of unexplained cash credits addition of Rs. 2,50,000/- in the nature of assessee's share application money added in the course of assessment framed on17.03.2016 despite the fact that the same lack of genuineness / creditworthiness. It transpires at the outset qua the instant issue that the CIT(A) has deleted the impugned addition for ....

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.... years. Therefore, the addition is bad in law and cannot be sustained. The order passed u/s 144 of the Income-tax Act, 1961 is best judgment assessment in which the AO shall take into account all relevant material which he has gathered and after giving the appellant sufficient opportunity being heard, make assessment of the total income or loss to best of judgment and determined the sum payable by the appellant. This section does not give arbitrary power to the AO to make the assessment on his whims and fancies. The assessment order should be based on material available with the AO and shall be reasonable estimate. It appears that the AO has not considered the audited accounts available with him while making the addition. Three are plethora....