2023 (6) TMI 1284 - AT - Income Tax

Addition u/s 143(3) - rejecting the books of accounts of the assessee u/s 145(3) - HELD THAT - As during the appellate proceedings assessee has not furnished any evidences, where the ld. CIT(A) relied on the detail findings and reasons given by the ld. AO in his assessment order which have not been explained by the assessee and no evidence to the contrary has been submitted either at the stage of assessment or appellate. Before us taking into consideration the facts and circumstances of the case and the submissions by the ld. DR, the Bench confirm and uphold the order of the ld. CIT(A) as per rejection of books of accounts of trading of bullions and jewellery of the assessee u/s 145(3) of the Act by invoking the provisions of Section 145(3) of the Act as the assessee did not produced books of account, bills/vouchers of all the expenses even before us and the addition made by the AO amounting is hereby confirmed - Decided against assessee.

Summary

Issues involved:
The appeal is filed by the assessee against the order of the National Faceless Appeal Centre, Delhi, arising from the order passed by the ACIT, Circle-1, Alwar under Section 143(3) of the Income Tax Act, 1961.

Grounds raised by the assessee:
The assessee raised two grounds:
1. Addition of Rs. 15,00,000/- u/s 143(3) of the I.T. Act, 1961.
2. Rejection of books of accounts u/s 145(3) of the I.T. Act, 1961.

Assessment and CIT(A) findings:
The assessee, engaged in trading of jewellery and partner in a partnership firm, filed its return of income but failed to produce all relevant details during assessment proceedings. The CIT(A) dismissed the appeal based on the AO's findings that the appellant did not produce necessary books of account and bills/vouchers, leading to rejection of accounts u/s 145(3) of the Act. The AO made an addition of Rs. 15,00,000/- to the total income.

Appellate Tribunal decision:
The assessee appealed to the Tribunal, but neither the assessee nor the representative appeared for hearings or filed submissions. The Tribunal observed the absence of the assessee's representative and decided to proceed based on lower authorities' orders and the submissions made by the ld. DR. The Tribunal confirmed the CIT(A)'s decision to reject the books of accounts of trading of bullions and jewellery, upholding the addition of Rs. 15,00,000/- to the total income. The appeal of the assessee was dismissed.

Conclusion:
The Tribunal upheld the rejection of books of accounts and the addition to the total income, emphasizing the importance of producing necessary documentation during assessment proceedings. The decision was made in absence of the assessee or their representative, based on the findings of the lower authorities and the submissions by the ld. DR.