Case Law Details
VRB Foods Pvt. Ltd. Vs DCIT (ITAT Delhi)
The issue under consideration is whether rejection of method of accounting under section 145 without even examination of books of assessee is justified in law?
ITAT states that, the whole addition is made by applying the provision of section 145(3) of the Act. The provisions of Section 145 (3) can only be applied if the assessing officer is not satisfied about the correctness or completeness of accounts of the assessee primarily. Therefore, even without examination of the books of accounts of the assessee which assessee has not produced despite called for by the assessing officer, application of the provisions of Section 145 (3) is premature. Therefore, as the learned authorised representative has agreed to produce the books of accounts before the assessing officer and the learned DR has also expressed his willingness on behalf of the learned assessing officer to examine it, therefore, in the interest of justice, ITAT set aside the whole issue back to the file of the ld AO with a direction to the assessee to produce books of accounts and vouchers before him for examination. In the result, the appeal of assessee is allowed.
FULL TEXT OF THE ITAT JUDGEMENT
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