9911796707
TMI Blog2018 (8) TMI 1372X X X X Extracts X X X X X X X X Extracts X X X X ..... not be verified in absence of evidence led by the assessee to support the claim. It is permissible for the AO to disallow the claims while finalising the assessement in the manner provided under Section 144 of the Act to make best judgment assessment. It is not required for the AO to apply net profit at a particular rate while finalising the assessment under Section 144 of the Act. Method for estimating the income in the previous year of the assessee on the basis of net profit at a particular rate cannot be applied for all subsequent years. The impugned order passed by the Tribunal is not in accordance with law and, therefore, we set aside the impugned order passed by the Tribunal and remit the matter back to the Tribunal to decide the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Enterprises and Surgical and M/s.Prabhat Enterprises and directing the Assessing Officer to calculate Net Profit of the assessee at the rate of 11.5% of the total sale for all the three propriety concerns. iii) Whether,on the facts and circumstances of the case and in law the learned ITAT was justified in deleting addition of ₹ 29,00,000/- out of the addition of ₹ 33,31,1820/- made for unexplained investment in immovable property and fully deleting the addition of ₹ 29,00,000/- made for unexplained gift without giving an opportunity to the Assessing Officer despite the fact that the assessee had not furnished any evidence before the Assessing Officer during the assessment proceedings. 3. The assessee runs three prop ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ver, rejected the appeal and held that the AO had provided ample opportunities to the assessee to represent his case and give necessary details along with evidence to prove the receipts and payment mentioned in the final account but the respondent-assessee did not furnish the details as required by the AO and, therefore, the AO had invoked the provisions of Section 144 of the Act and completed the assessment under Section 144 of the Act on the basis of material available before the AO. 8. The respondent-assessee thereafter, filed an appeal before the ITAT. The ITAT on the appeal has passed the impugned order. 9. The ITAT has recorded a finding of fact that the assessee did not produce the books of account, even though the accounts of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... est judgment assessment under Section 144 of the Act. The AO was required to assess the income estimating the net profit at a particular rate. The AO had to consider the facts and circumstances of the case and evaluate the material collected by him to make an assessment on the best of his judgment. 13. Heard Mr. Praveen Kumar, learned counsel for the appellant and Mr. Ashok Trivedi, learned counsel for the respondent. 14. We find that the AO while finalising the assessment under Section 144 of the Act had disallowed the claims of expenditure made by the assessee which could not be verified in absence of evidence led by the assessee to support the claim. It is permissible for the AO to disallow the claims while finalising the assesseme ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
