| COURT: | Allahabad High Court |
| CORAM: | Pankaj Mithal J, Vinod Kumar Misra J |
| SECTION(S): | 145, 68, 69C |
| GENRE: | Domestic Tax |
| CATCH WORDS: | Bogus purchases, Bogus Sales, unexplained cash credit |
| COUNSEL: | Shambhu Chopra |
| DATE: | May 4, 2017 (Date of pronouncement) |
| DATE: | May 13, 2017 (Date of publication) |
| AY: | - |
| FILE: | Click here to view full post with file download link |
| CITATION: | |
| S. 145: If the AO has not rejected the books of account, it means that the assessee has maintained the books of accounts in accordance with the prescribed standards as per s. 145 of the Act. If so, the AO is not entitled to make any addition on account of sale of goods out of books or for investment in stock out of undisclosed sources | |
On perusal of the impugned judgment and order of the Tribunal dated 27.10.2009 reveals that the assessee has maintained the books of accounts in accordance with the prescribed standard as per Section 145 of ‘the Act’. The account books have not been rejected by the assessing officer. In view of the above, the Tribunal formed an opinion where once the account books are expected to be maintained in the prescribed accounting standard, the assessing officer could not have made any additions towards the sale of rice treating it to be outside the books of accounts or towards investing in stock of rice and wheat outside the books of accounts
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