Sh. Mohamad Yaqoob Khan, Kashmir vs Income Tax Officer, Ward Anantnag, ... on 18 December, 2019
7. We have heard the rival submissions and perused the material available on
record. We find that the AO has rejected the books of account on the basis of fact
that of original return, when the expenditure shown by the assessee has been
reduced in revised return. Therefore, the AO was of the view that the books of
account are not giving correct and true picture. Therefore, by citing some judicial
decisions, the AO has applied net profit rate at 10% and made addition
accordingly. However, CIT(Appeal) has reduced the same to 8% by applying ratio
of some decisions. However, we find that the assessee has submitted before the
CIT(Appeal) by relying on the decisions in the case of Dhampur Sugar Mills Ltd
(supra) and M/s IVF Holdings (P) Ltd. Mumbai (supra), that where the revised
return has been filed as per the terms of the provisions of section 139(5), the
original return shall be treated as withdrawn. Therefore the revised return is only to
be considered during the assessment proceedings. However, the AO, on the basis
of original return of income pointed out some discrepancies and rejected the books
of account.