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TMI Blog2016 (8) TMI 227X X X X Extracts X X X X X X X X Extracts X X X X ..... ought to have made the best judgment assessment on the basis of the history and nature of business and the net profit rate as shown by the assessee in the previous year. In view of the same, the matters are required to be reconsidered by the Assessing Officer keeping in mind the principle rendered in the aforesaid decisions. - TAX APPEAL NO. 1255, 1263, 1179, 1181, 1236, 1247, 2453 of 2009 TO TAX APPEAL NO. 2454 of 2009 With TAX APPEAL NO. 1520 of 2010 With TAX APPEAL NO. 2635 of 2010 With TAX APPEAL NO. 4 of 2012 - - - Dated:- 1-7-2016 - MR. KS JHAVERI AND MR. G.R.UDHWANI, JJ. FOR THE APPELLANT : MR RK PATEL, ADVOCATE FOR THE OPPONENT : MR PRANAV G DESAI, ADVOCATE ORAL JUDGMENT (PER : HONOURABLE MR.JUSTICE KS JHAVE ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ces of the case, the Tribunal has substantially erred in law in interpreting the provisions of Section 234B of the Income Tax Act, 1961 by not adjudicating the confirming the levy of interest under the above provisions though the Assessing Officer has not initiated levy or charge of interest by a speaking order? 2.1 Tax Appeal Nos.2453/2009 2454/2009 have been admitted for consideration of the following Questions of law; Whether on facts, the Tribunal is right in law in confirming addition of ₹ 21,87,551/= made by the Assessing Officer on processing profit and loss while rejecting the book result under Section 145 of the Income-tax Act, 1961 ? 2.2 Tax Appeal No.1520/2010 has been admitted for consideration of the followi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee is that having rejected the books of accounts maintained by the assessee after verification of its correctness, which was not contested by the assessee, the Assessing Officer could not have made additions by relying upon the same books of accounts, which had been rejected by him. 4. In support of the above submission, reliance has been placed on the judgment of this Court in the case of Commissioner of Income-taxII v. Dhiraj R. Rungta, [2013] 40 taxmann.com 284 (Gujarat). In that case, the Assessing Officer found a number of glaring mistakes in the return filed by the assessee and rejected the books of accounts. However, the Assessing Officer made some additions by relying upon the same books of accounts, which had been rejected ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... upra). When the Assessing Officer found mistakes in the books of accounts of the assessee on verification and consequently, rejected the same, then it ought not to have made additions by relying upon the same books of accounts. Instead, the Assessing Officer ought to have made the best judgment assessment on the basis of the history and nature of business and the net profit rate as shown by the assessee in the previous year. In view of the same, the matters are required to be reconsidered by the Assessing Officer keeping in mind the principle rendered in the aforesaid decisions. 7. Consequently, the orders passed by the revenue authorities as also by the Tribunal are quashed and set aside. The matters are remanded to the concerned Assess ..... X X X X Extracts X X X X X X X X Extracts X X X X
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