TaxTMI 
TaxTMI 
2021 (7) TMI 200
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....ng Officer under section 143(3) r.w.s. 254 of the Act (hereinafter referred to as "the Act"). 2. Grounds of appeal raised by assessee are as follows: "1. On the facts and in the circumstances of the case, the learned CIT (A) has grievously erred in holding that sufficient opportunity of being heard has been given to the appellant by the Ld.AO. 2. On the facts and in the circumstances of the case, the Ld. CIT (A) has grossly erred in rejecting the appelant's claim that the order passed by the Ld. AO is bad in law and deserves to be annulled. 3. On the facts and in the circumstances of the case, the learned. CIT(A) has erred in arriving to a conclusion that the appellant has understated lease rental income to the....
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.... us (in second), during the original assessment proceedings, the books results were rejected mainly due to the reason that various information called for were not submitted by the assessee to AO. In de novo proceedings, in pursuance of order of Tribunal, the ld assessing officer framed assessment order under section 143(3) r.w.s.254 of the Income Tax Act 1961. In de novo proceedings, the assessee vide submission dated 25.02.2013 has stated that it is not at all engaged in any production activity on its own as the factory has been de facto in substance leased out. However in order to avoid any legal complication arising out of tenancy the amount received as lease rent was shown as job work charges under the head 'Income' and Income f....
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....% which is the normal rate of TDS for job work. If this income was rental then the TDS should have been 20%. Therefore, AO held that the books of the assessee and its accounting is, contrary to all norms and conventions and the books of account are, therefore, not believable at all. The assessee failed to give a written agreement with the parties regarding lease rental and hence even this story is not believable. It is strange and peculiar case that the assessee itself says that it has manufactured and fabricated its books of account, leased out the factory but does not produce the lease agreement to prove that the assessee had leased out the factory. The AO also noted that assessee has not only manufactured its books of account but also fa....
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....at should be the estimation of profit. The appellant himself admitted that it had received Rs. 15,58,500/- as lease rent income (shown as textile income) from different parties viz M/s. Kartik Enterprise, M/s. Status Synthetics and M/s. Diamond Rayons. Against this, in the account submitted vide written submission dt. 14.11.2014 in respect of Texturizing Division the appellant has shown lease income at Rs. 8,75,000/-. Thus, there is a clear-cut suppression of income to the extent of Rs. 6,83,500/- (15,58,500 -,8,75,000). In order plug any other revenue leakage the addition is sustained to the extent of Rs. 10,00,000/-. In view of this, addition of Rs. 10,00,000/- is sustained and the balance of addition of Rs. 43,35,130/- (Rs. 53,3....
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....ied upon, and perused the facts of the case including the findings of the ld. CIT(A) and other material brought on record. We note that there is a clearcut finding given by the ld. CIT(A) that assessee has fabricated books of accounts that is why the books of accounts have been rejected by the Assessing Officer under section 145(3) of the Act. The assessee did not submit required documents during the assessment stage. Assessee has manufactured and fabricated its books of account. The assessee has also fabricated the excise register.We have gone through the order of the ld. CIT(A), in the light of the above narrated facts, and noted that conclusion arrived at by ld CIT(A) does not require interference. Therefore, we confirm and approve th....
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....firmed by the ld CIT(A). Where the AO himself rejected the books of account of the assessee after holding that assessee`s books do not show true results and made an estimate addition on gross profit basis then other item-wise disallowance should not be made. For that reliance can be placed on the judgment of the Hon`ble Karnataka High Court in the case of Bahubali Neminath Muttin,[2016] 73 taxmann.com 100 (Karnataka), wherein it was held as follows: "15. The principle that if a finding of fact is not challenged as being perverse, the High Court is bound to accept such finding. Therefore, as no such substantial question of law has been framed and the questions pertain to findings of fact, which cannot be said to be perverse as it is....