TaxTMI 
TaxTMI 
2021 (9) TMI 1203
X X X X Extracts X X X X
X X X X Extracts X X X X
....t the assessee, a private limited company, filed its return of income declaring loss of Rs. 50,08,147/-. Subsequently, the assessee's was taken up for scrutiny. In response to notice issued u/s. 143(2) of the IT Act, the assessee furnished all the details called for. The assessing officer finalized the assessment proceedings vide order u/s. 143(3) dated 30.12.2016. While finalizing the assessment, the assessing officer rejected the book results by invoking the provisions of section 145 of the IT Act. Further, the assessing officer estimated the income from business at 2% on Rs. 19,44,34,695/- representing revenue from operations. The assessing officer also treated the amount of Rs. 4,23,51,491/- as income from speculation business rejec....
X X X X Extracts X X X X
X X X X Extracts X X X X
....re-constructed trading account it is clear that Electricity charges and eligible depreciation cannot be disturbed. Even the figure of consumption of raw material is supported by audited financial statements. Therefore, the only item that may not have complete supporting evidence is expenditure. The total expenditure debited to trading and profit and loss account amounted to Rs. 1,99,35,286/- (Rs. 83,52,801+1,15,82,485). Therefore, the disallowance that can be made is from the expenditure that was claimed by the appellant. In view of these facts it is opined that disallowance of the loss worked out may meet the ends of the justice. Therefore, the total income is decided as Nil rejecting the loss claimed to have been incurred by the appellant....
X X X X Extracts X X X X
X X X X Extracts X X X X
....t specified any deficiencies or inconsistencies in the accounts maintained by the assessee so as to invoke the provisions of section 145(3) of the Act. 6. The Ld. CIT (A) ought to have appreciated that the AO had only made general observation that the assessee had not produced material and details called for and that the invoking of provisions of section 145(3) based on such observations is not in order. 7. The Ld. CIT (A) ought to have appreciated that the appellant has maintained regular books of account which had been audited U/s 44AB of the Act and the provisions of section 145(3) cannot be invoked in the appellant's case. 8. The Ld. CIT (A) erred in rejecting the loss claimed of Rs. 50,08,147/- and in det....
X X X X Extracts X X X X
X X X X Extracts X X X X
....re when assessee itself declared the same in its return under the head "other income" and all AO did is to treat the same as "Speculative Business" and taxed accordingly. 4. The appellant prays that the order of the Ld. CIT(A) on the above grounds be set aside and that of the Assessing Officer be restored. 5. Any other ground(s) that may be urged at the time of hearing." 6. As regards the ground Nos. 3 to 7 raised by the assessee relating to rejection of books of account, the AO rejected the book results and computed the income by invoking provisions of section 145(3) of the IT Act. The reasons mentioned was that the appellant was unable to produce the complete books of accounts and purchase bills and also bills in supp....
X X X X Extracts X X X X
X X X X Extracts X X X X
....raised by the assessee on this issue. 7. With regard to ground No. 8 relating to rejecting the loss claimed of Rs. 50,08,147/-, the CIT(A)'s reasoning by considering the reconstructed trading account is proper and we do not find any reason to interfere with decision of CIT(A). Accordingly, we uphold the order of the CIT(A) and dismiss the ground No. 8. 8. Ground Nos. 1 & 2 are general in nature, hence, need no adjudication. Ground Nos. 9 to 11 are argumentative in nature, need no adjudication. 9. The revenue has raised 5 grounds of appeal, out of which, ground Nos. 1, 4 & 5 are general in nature, therefore, no adjudication is required for the same. 10. As regards ground Nos. 2 & 3 raised by the revenue relating the action of....