2025 (3) TMI 1927

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....ioner of Income Tax (Appeals)-16, Chennai [hereinafter "CIT(A)"] dated 31.01.2024 in the matter of assessment framed by Ld. Assessing Officer [AO] u/s. 143(3) r.w.s 144C(13) of the Income-tax Act, 1961 (hereinafter "the Act") on 05.05.2017. 2. There is a delay of 11 days in filing C.O No.80/Chny/2024 by the assessee. The assessee has filed condonation petition/affidavit stating the reasons for delay in filing the appeal. We have considered the petition/affidavit of delay in filing the C.O and satisfied that there was sufficient cause for not filing the appeal within the prescribed time limit. Hence, the delay is hereby condoned. 3. The grounds of appeal raised by the Revenue are as under: "Whether on the facts and circumstanc....

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....ounts were accurate, with no non compliance with the Accounting Standards prescribed by the ICAI and held that there was no valid case for the A.O to invoke the provisions of Section 145 of the Act. Aggrieved the order of Ld. CIT(A), now the Revenue is in appeal before us. 5. The Ld. Departmental Representative (DR), has argued that the A.O has clearly pointed out that discrepancy in the books of accounts and accounting of profit for the purpose of computation of income and therefore, rightly rejected and estimated profit @8% of the gross turnover. 6. The Ld. Authorized Representative (A.R) of the assessee, on the other hand, submitted the Ld. CIT(A) has rightly allowed the provision for expenses claimed by the assessee and upheld the....

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....legal precedents, it underscores the significance of respecting the taxpayer's chosen method of accounting, especially when consistently followed without evidence of inherent defects in the system. The appellant contends that the rejection of books of account lacks legal merit and should be reconsidered in light of these fundamental principles. Consequently, there was no valid case before the Assessing Officer for invoking the provisions of Section 145 of the Income Tax Act. Hence, the rejection of the books of account by the Assessing Officer was disapproved. Additionally, the estimation of business income at 8% of turnover was deemed inappropriate in light of the facts and accounting standards, which were substantiated by various case....