| Question And Answer | |
|---|---|
| Subject: | SEC.68 |
| Category: | Income-Tax |
| Querist: | prakash |
| Answered by: | KSA Legal Chambers |
| Tags: | Best judgement assessment, cash credits, Rectification of Mistake apparent from the record |
| Date: | August 31, 2023 |
In the assessment completed U/SEc. 144 where the AO has rejected the books of accounts and disallowed the entire loss claimed by the assessee co on the ground that assessee has not produced the books and other evidences . Further AO has also made an addition U/SEc. 68 for not giving any details about the loans and also not allowed the carried forward business loss as well as depreciation loss.
Whether Ao can make addition U/SEc. 68, when he himself disallowed the entire loss on the ground of non production of books of accounts and non furnishing of any information to the notices issued .
Whether action AO of not allowance of carried forward business loss as well as depreciation loss is legally correct.
pl guide
When the assessment is made under section 144 , there cannot be separate addition under section 68 of the Act .
In Malpani House of Stones v. CIT (2017) 395 ITR 385 (Raj.) (HC) held that when income is estimated other additions cannot be made on the basis of entries in the books of account. In CIT v. Modern Rubber Industries (2013) 218 Taxman 70 (Mag.)(All.)(HC) the Court held that where best judgment assessment is made, there is no question of making addition on ground of sundry creditors.