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2013 (2) TMI 50 - ALLAHABAD HIGH COURTDisallowance of loss - average loss rate at 1.883% instead of the loss declared at 5.29% invoking sec 145(3) - Tribunal deleted the addition - Held that:- As no specific defect has been pointed out by AO as to why the books of accounts is liable to be rejected and therefore, the question of invoking the provision of Section 145(3) does not arise. And if the books of accounts cannot be rejected, there is no question of not accepting the loss declared by the assessee. In a business, sometimes the business runs in profit and sometimes runs in loss. Merely because in a particular year, the loss was higher, that would not empower AO to reject the books of accounts, unless some specific defect is pointed out in it's maintenance - in favour of assessee.
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