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ITA nos.3437/AHD/2002 with 5 others Asstt. Years 1993-94 & others

24. Before us, the Ld. D/R relied upon the assessment-order and argued that the Ld. AO has made addition perfectly.

25. We have perused the assessment-order as well as order of CIT(A) and heard the arguments of ld. DR. After a careful consideration, we find that the Ld. AO has rejected book-results and made the addition due to the single reason that the assessee has not produced books of account and documents. But the assessee has fully explained that owing to the outbreak of fire, the books and documents were destroyed. The assessee has also given complete evidences of the fire having taken place. We are of the considered view that the Ld. AO cannot reject book-results merely on his own belief or disbelief without considering the factual submissions made by the assessee. It is also noteworthy that the assessee is a listed company and its books of account were duly audited by statutory auditors, internal auditors, tax auditors and the financial results are published to investors as well as submitted to various authorities. The Ld. CIT(A) has given due consideration the overall position of the facts and rightly held that the Ld. AO was not justified to reject the book-results of the assessee. We agree with the findings noted and conclusions taken by the Ld. CIT(A). Therefore, this Ground of the Revenue is dismissed.

"5.5 We have perused the assessment-order as well as order of CIT(A). After a careful consideration, we find that the Ld. AO has rejected book- results and made the addition due to the single reason that the assessee has not produced books of account and documents. But the assessee has fully explained that owing to the outbreak of fire, the books and documents were destroyed. The assessee has also given complete evidences of the fire having taken place. We are of the considered view that the Ld. AO cannot reject book-results merely on his own belief or disbelief without considering the factual submissions made by the assessee. It is also noteworthy that the assessee is a listed company and its books of account were duly audited by statutory auditors, internal auditors, tax auditors and the financial results are published to investors as well as submitted to various authorities. The Ld. CIT(A) has given due consideration the overall position of the facts and rightly held that the Ld. AO was not justified to reject the book-results of the assessee. We agree with the findings noted and conclusions taken by the Ld. CIT(A). Therefore, this Ground of the Revenue is dismissed."