2017 (4) TMI 1435

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..... e is inadequate enquiry but not lack of enquiry, again the CIT must give and record a finding that the order/enquiry is erroneous. This can happen if an enquiry and verification is conducted by the CIT and he is able to establish and show the error or mistake made by the Assessing Officer, making the order unsustainable in law. In the instant case, the order of the CIT did not fulfil the above tes .....

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..... ioner of Income Tax (Appeals) [CIT (A)] findings with respect to the contentions made under Section 263 A of the Income Tax Act, 1961, in the circumstances of the case " 2. An assessment order was passed by the Assessing Officer ('AO') on 20th December, 2013. The AO completed the assessment by making an addition of ₹ 6,11,230 as business income @ 8% of the gross receipts of ₹ 76 .....

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..... ssee in the course of inquiry by the AO; iii. The Assessee could not produce his books of accounts as they were misplaced. He informed the AO that he had lodged an FIR for that purpose with the Police Station at Naraina, New Delhi. 5. In the facts and circumstances, the ITAT came to the conclusion that the approach of the AO in the original Assessment Order was justified, reasonable and in ac .....

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..... mate the business income of the assessee by taking a reasonable and appropriate recourse. Thereafter, the AO proceeded to estimate the business income of the assessee @8% of gross receipts by merely referring to Section 44 AF of the Act. We cannot ignore this fact that in the letter dated 20.12.2013, the assessee pressing into service his revised computation of income pleaded that the surrendered .....

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..... order unsustainable in law." In the instant case, the order of the CIT did not fulfil the above test. 9. The Court is unable to discern any legal infirmity in the impugned order of the ITAT. The question framed is answered in the negative i.e. against the Revenue and in favour of the Assessee. The appeal is accordingly dismissed with no order as to costs.
Case laws, Decisions, Judgement .....

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