2020 (11) TMI 265

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....income so determined at Rs. 24,80,470/- as against the returned income of Rs. 14,67,720/- is bad both on the facts and in law. Therefore the declared income should have been accepted in the facts and circumstances of the case. 2. That in any view of the matter invoking section 145(3) of the income tax act for rejection the books of accounts highly unjustified and illegal in the facts and circumstances of the case because books of account are audited by the qualified chartered accountant and expenses are fully vouched and recorded in books of accounts which were examined hence application of provision is highly unjustified. 3. That in any view of the matter the addition of Rs. 2,78,395/- as made by the assessing officer by ....

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....legal in the eyes of law because the assessing officer failed to appreciate the facts of the case correctly and even no proper opportunity of being heard was provided to the assessee to furnish further facts and evidences hence entire action of two lower authorities are highly unjustified. 8. That in any view of the matter additions of Rs. 2,78,395/- as per para 3.2 of the order and disallowance of Rs. 7,73,134/- Rs. 8,28.793/- as per para 5 of the order were made in haste on the bases of presumptions and guess look by the assessing officer in casual manner which is not correct therefore the additions/disallowance are unjustified and illegal in the facts and circumstances of the case. 9. That in any view of the matter the ....

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....ded to disallow the depreciation on the ground that one of the trucks purchased during the year under consideration was not to put to use and therefore the depreciation is not allowable. It is pertinent to note that when the income of the assessee was estimated based on the rejection of Books of Accounts by adopting the Net Profit @6%, then, further disallowance of depreciation is not warranted. 5. Ld.AR has relied upon the decision of the Hon'ble Andhra Pradesh High Court in the case of Indwell Constructions Vs. CIT [232 ITR 776], wherein the Hon'ble High Court has held as under: "No doubt there is a big difference between profit earned with own capital and profit earned with borrowed capital and such a difference could....