INCOME TAX ACT, 1961

Section 145(3)

Accounting method - Rejection - Reason, spouse of assessee did not disclose as to where cash in-hand lied, and further, unsecured loans in books of wife of assessee were not reflected in books of assessee -

AO rejected assessee's books on the reasoning that spouse of assessee did not disclose as to where cash in-hand lied, and further, unsecured loans in books of wife of assessee were not reflected in books of assessee. Held: AO could not expect to find details of unsecured loans of wife of assessee in books of accounts of assessee. This could not be a valid reason to reject his books of accounts that too when assessment had not been completed following due procedure as mentioned under section 144.

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2017-18

INCOME TAX ACT, 1961

Section 69A and 115BBE

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