AO Cannot Refer Matter to DVO Without Rejecting Books of Account: Allahabad HC

PCIT Vs Parmarth Iron Pvt Ltd (Allahabad High Court) In a significant ruling, the Allahabad High Court addressed appeals involving the rejection of books of account under the Income Tax Act. The court deliberated on whether an Assessing Officer (AO) can refer matters to a Departmental Valuation Officer (DVO) without first rejecting the books of account, as mandated by Section 142A. The case revolved around appeals filed by the revenue challenging a tribunal’s decision from 2019 regarding the assessment year 2004-05. The Tribunal had allowed the assessee’s appeal while dismissing th...