Dear All,
ITO issued a notice under section 143(2) after issuing the same under section 143(1). On preparing the books of accounts, if came to the notice of the assess that the actual amount that was to be offered to the Tax authorities was loss and not profit. Whereas in the ROI he shown the profit. This was because, the proper books of accounts were not maintained. In the assessment proceedings, after preparing the books of accounts, it came to the light of the assessee that the actual amount was a loss. This came to his light during the course of the assessment under section 143(2) proceedings. Now ITO is not willing to consider this loss. If the action of the ITO is justified? If no, pl can someone refer any case law of the supreme court.
Regards,
Tejas Chokshi
CAclubindia
