No Addition for Income Tax of Books of accounts lost but Audit done by CA : ITAT

Addition in Income Tax of Books of Accounts Misplaced

Facts of the Case

The books of account of the business carried out by the assessee were misplaced

 Assessing Officer estimated the N.P. @ 8% since the assessee could not produce his books of account during the course of assessment proceedings and accordingly added the differential amount of the total income of the assessee.

Decision of ITAT

We find that books of account for the assessment year under consideration were duly audited by an independent Chartered Accountant. Therefore, the assessee cannot be put in a disadvantageous position merely for the reason that his books of account were misplaced after the audit was conducted by an independent Chartered Accountant. 

Further, the Chartered Accountant who audited the books of account also did not give any adverse findings regarding the books of account maintained by the assessee. In view of these facts and circumstances, the addition is not justified. Thus, the findings of Ld. CIT(A) deserves to be set aside.