TaxTMI 
TaxTMI 
TaxTMI 
2025 (6) TMI 1747
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....a condonation petition., which are as follows On perusal of the condonation petition, the reason for delay in filing the appeal seems to be genuine and bonafide. The Ld. D.R did not raise any objection in condoning the delay. Keeping in view, the condonation petition as well as judicial pronouncement that the case should be decided on merit not on technical issue, the delay is hereby condoned. 3. Brief facts of the case of the assessee are that the assessee engaged in the business of trading in gray fabrics and investment in real estate projects, filed its return of income for AY 2017-18 declaring total income of Rs. 1,78,150/-. The case was selected for scrutiny, notices u/s 143(2) and 142(1) were issued, in response to the notices the a....
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.... pointed out by the AO on the aforesaid documentary evidences. The Ld. Counsel submits that the AO has erred in holding that unsecured loan of the above amount is an unexplained money. The Ld. Counsel further submits that in fact due to recession and stiff competition in the market, small and medium business are finding almost impossible to survive and textile trade business are almost in the sinking condition. The Ld. Counsel further submits that the order passed by the Ld. CIT(A) to confirm the order of AO is completely based on surmises and conjectures. 6. Contrary to that the Ld. D.R supports the impugned order. 7. Upon hearing the submission of the counsel of the respective parties, the first issue raised by the assessee in this appe....
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....g the provision of section 145(3). The rejection books of account simply on lower gross profit rate in comparison to earlier years or with other the assessee placed in similar stance would not suffice and will not stand the test of the appeal. The power vested with the AO u/s 145(3) has to be exercised judiciously not arbitrarily. The Hon'ble Karnataka High court in the case of Karnataka State Forest Industries Corporation Ltd. vs. CIT reported in [1993] 201 ITR 674 (Kar) has held that the AO's power under the section are not arbitrarily and he must exercise his discretionary power. The clear finding is necessary before invoking the provision of section 145(3) of the Act. The Hon'ble Supreme Court and the various High Courts in number of ca....
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....sclosed - - - 24,64,558.50 GP Undisclosed - - - 101,80,074.98 9. It is important to mention here that the books of account of the assessee have been audited by the statutory auditors under the provision of Companies Act and also audited under the provision of Section 44AB of the Act. As we have already stated that in the present case books of account of the assessee has been rejected by the AO only on this ground that the gross profit of the assessee is low during the relevant period as compared to the other years. We do not find anything in the order of AO to specify the defects in the books of account for the purpose of rejecting it. The AO has not doubted the sales and purchases made from various parties. The submission of the ....
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....Appellant. * Details of the Board of Directors of the said company B. Loan from Indian Infotech & Software Ltd. * Copy of ledger confirmation of said party. * Copy of annual report and audited financial statements for the year ended 31.03.2017. * Copy of acknowledgment of ITR filed by said company for AY 2017-18 * Copy of the relevant pages of the bank statements of the said company highlighting transactions with the Appellant. * Details of the Board of Directors of the said company 11. The Ld. CIT(A) has confirmed the order of AO only on this ground that there was nothing has been submitted. It is pertinent to mention here that assessee had explained that for survival of the business of the company, they have tried to explo....