Nirmal Kumar Dugar Vs ITO (ITAT Jaipur)
ITAT Jaipur held that denial to allow the business loss stating the requirement of books of accounts to be audited is not justifiable since turnover during relevant period didn’t exceed the prescribed limit for getting books of accounts audited.
Facts- The assessee was engaged in shares and securities transactions, speculative in nature, of the value of Rs. 18,39,385/-in view of provisions of section 43(5) of the Income Tax Act, 1961, and further that the assessee had failed to establish business loss of Rs. 18,39,385/-from the transactions relating to shares and securities.
CIT(A) dismissed the appeal. Being aggrieved, the present appeal is filed.
Conclusion- Held that having regard to the limit of the turnover during the relevant period, and the total turnover or gross receipts of the assessee during the relevant period, we find that the requirement of auditing of account books was not applicable in the case of the appellant. Having regard to the findings recorded by Learned CIT(A), when the only objection to the eligibility of the business of the appellant was non auditing of account books, but, as discussed above, said requirement was not applicable in the case of the appellant, the claim of the assessee deserves to be allowed.
