Govindam Export Vs DCIT (ITAT Jaipur)
ITAT Jaipur held that in case the books of accounts are rejected by applying provisions of section 145(3) of the Income Tax Act then assessment must be completed under section 144 of the Income Tax Act which is not done by AO in the present case.
Facts- The assessee is a partnership firm and engaged in the business of export of gemstones. The Income Tax Department carried out the search and seizure operation on business premises of the assessee on 24-06-2003 and in consequent to that the assessment proceedings were initiated u/s 153A of the Act. As the assessee has taken a technical ground of making the addition in the year under consideration as to the nature of addition based on the incriminating material or not, it would be thus also necessary to tabulate the details of filing of the original return u/s 139 (1) vis a vis time limit for issue of notice u/s 143(2) and date of issue of the notice u/s 143(2) of Income Tax Act, 1961 for these assessment years as well.
The issue taken up for all these years (i.e. AY 1998-1999 to AY 2003-2004) are on similar contention holding that the purchases made by the assessee are tainted / bogus / unverifiable. While making the addition for all these purchases, the ld. AO rejected the books of accounts for all these years by resorting to the provision of section 145(3) of the Act.
