TaxTMI 
TaxTMI 
2023 (4) TMI 36
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....hese appeals are clubbed, heard together and a common order is being passed for the sake of convenience as under. Facts are extracted from I.T.A.4/Viz/2023 . 2. Briefly stated the facts are that the assessee is a partnership firm, engaged in the business of electrical fabrication contracts filed it's return of income as follows : A.Y. Returned Income 2013-14 87,90,419 2014-15 91,67,810 2015-16 92,67,150 2016-17 1,36,84,114 A survey operation u/s 133A of the Income Tax Act, 1961 (in short "Act") was conducted at the business premises of the assessee on 19.02.2019 and some incriminating material in the form of daily cash payment vouchers, personal diaries of the managing partner, promissory notes, loose sheets and a pen drive (sof....
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....of the case, the Learned CIT(A) would have appreciated that the Assessing Officer has estimated the income without rejecting the books under section 145 of the I.T.Act and hence would have treated the estimation as invalid. 4. On the facts and circumstances of the case, the Learned CIT(A) ought to have appreciated that the appellant has categorically furnished reasons for low profits in this line of business by explained the nature of the contract works carried on by the firm and therefore, would have deleted the addition made. 5. On the facts and circumstances of the case the Learned CIT(A) ought to have appreciated that the original assessment was completed u/s 143(3) of the I.T.Act where the profit disclosed was accepted and also cer....
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....of Commissioner of Income Tax, Belgaum Vs. Anil Kumar & Co. [2016] 67 taxmann.com 278 (Karnataka) held that (iii) Hon'ble High Court of Calcutta in the case of Swadeshi Commercial Co.Ltd. Vs. Commissioner of Income Tax, West Bengal vide ITA 219 of 2001 dated 18.12.2008 held that He further contended that all the above Hon'ble High Courts have categorically held that profits of the assessee cannot be estimated without rejecting the books of accounts. He further argued that by following the above decisions of the various High Courts, Tribunals have taken the same view. Therefore, he pleaded to set aside the order passed by the AO, who estimated the profit of the assessee without rejecting the books of accounts. He further contended that th....
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....on". Therefore, in the absence of such evidence, the Ld.CIT(A) confirmed the estimation made by the AO @8% on main contracts and 4% on sub contracts. No doubt, the assessee has to establish the expenditure incurred for the purpose of it's business or profession during the assessment proceedings and the onus lies heavily on the assessee to establish the nature of the expenditure with the support of documentary evidence. Then only, it is entitled to claim the expenditure. In the present case on hand, if the AO is not satisfied with the explanation given by the assessee, he should have rejected the books of accounts and estimated the profit, according to the facts of the case. The AO ought to have disallowed the quantum of expenditure for whic....
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....been framed under section 144, the Assessing Officer and the Commissioner (Appeals) were in error in resorting to an estimation of income and such exercise undertaken by them was not sustainable. Section 145(3) lays down that the Assessing Officer can proceed to make assessment to the best of his judgement under section 144 only in the event of not being satisfied with the correctness of the accounts produced by the assessee. In the instant case, the Assessing Officer has not rejected the books of account of the assessee. To put it differently the Assessing Officer has not made out a case that conditions laid down in seciton1 45(3) are satisfied for rejection of the books of account. Thus, when the books of account are maintained by the ass....