2025 (4) TMI 31

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....sioner of appeals is not correct in confirming the order of the ITO passed u/s. 143(3) r.w.s 144B of the 1.T.Act without giving sufficient opportunity to your petitioner to explain its case and to file the relevant details. 2. The CIT is not correct in confirming the order of ITO rejecting the books of accounts when your petitioner has been maintaining books of accounts according to the principles accepted by the accounting standards, duly audited every year regularly and your petitioner accounts were audited u/s. 44AB of the IT Act and there is no deviation/change in the method of accounts. 3. The CIT is not correct in confirming the order of ITO arbitrarily rejecting the books of accounts, make best judgement assessment and apply a ne....

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....tails called for and the ITO's contention that your petitioner has not filed the bills and vouchers is not correct. 10.Confirming the order of the ITO by the CIT is against the principle of natural justice may be directed to be cancelled. For the reasons stated above it is prayed that order passed by the ITO u/s. 143 (3) read with 144B may be directed to be cancelled and consider the return filed by your petitioner and pass such an order as maybe found in accordance with law. 3. Brief facts of the case are that the assessee is a private limited company engaged in the business of travel agency and also as a tour operator. The assessee filed its return of income for the assessment year 2018-19 on 28.06.2018 declaring loss of Rs. 1,06....

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....see stating that there is no infirmity in the order of AO. Aggrieved, the assessee is in appeal before us. 4. The Ld.AR submitted that the assessee is a commission agent of travel business and earning very thin margin profit in commission and after considering the administrative expenses, the company is under loss from past years. Therefore, the assessee could not run the office properly and furnish the entire documents during the assessment proceedings as well as appellate proceedings. The ld. AR stated that the assessee has incurred losses during the impugned assessment year and also previous and next financial years as detailed below : A.Y. 2017-18 Loss declared Rs. 16,02,557/- A.Y. 2018-19 Loss declared Rs.1,06,69,072/- A.Y. 201....

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....ne through facts and circumstances of the case. Admittedly, the assessee has filed return of income by declaring the net loss of Rs. 1.06 Crores for the impugned assessment year by filing the audited financials along with the Tax audit report u/s. 44AB of the Act. However, we note that the assessee has failed to submit the evidence in support of the expenditure claimed in the profit and loss account during the assessment and appellate proceedings. Hence, the AO has estimated the profit @ 8% of the Commission income shown in the profit & loss account by rejecting the books of accounts and brought to tax. The same has been confirmed by Ld.CIT(A), since the assessee has only submitted the written submission but not furnished any evidence in su....