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| The Tax Publishers2020 TaxPub(DT) 3021 (Del-Trib) INCOME TAX ACT, 1961
Section 145(3)
Even without examination of books of account of assessee which assessee had not produced, despite being called for by AO, application of section 145(3) was premature and, therefore, in the interest of justice, whole issue was set aside to AO with direction to assessee to produce books of account and vouchers before him for examination.
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Accounting method - Rejection - Incoherent action under section 145 without even examination of books of assessee -
AO made addition for precisely three reasons, i.e., (a) Non-production of books of account and voucher. (b) Difference in quantiative details between Letter, dated 24-2-2015 and tax audit report. (c) On the aspect of valuation as per report of auditor. Assessee's case was that no case was made out for invocation of section 145 and merely on inchoate comments of statutory auditor and on incorrect deficiences in valuation, impugned addition was made which stood already jettisoned in order of Delhi ITAT in similar facts in assessment years 2010-11 and 2011-12. Held: Even without examination of books of account of assessee which assessee had not produced, despite being called for by AO, application of section 145(3) was premature. As both the parties readily agreed that if books of account were produced before the AO, issue might be looked at from the point of view of decision of ITAT in assessee's own case provided other facts or any defects were not found in those accounts. Therefore, in the interest of justice, whole issue was set aside to AO with direction to assessee to produce books of account and vouchers before him for examination.
REFERRED :
FAVOUR : Matter remanded.
A.Y. : 2012-13
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