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2012 (11) TMI 552 - ITAT CHANDIGARHReferring matter to Valuation officer - Following the judgement of Supreme court in case of [Sargam Cinema V CIT, 2009 (10) TMI 569 - SUPREME COURT OF INDIA ] Held that:- Asessing authority could not have referred the matter to the Departmental Valuation Officer (DVO) without the books of account being rejected. Even if the books were not produced at least the Assessing Officer should have referred to the valuation officer. Even after that it was not done at atleast at the time when the ld. CIT(A) had forwarded the report for his remand he should have made some comments but nothing was done though it was contended by the ld. DR for the revenue that there was no remand report available but the ld. CIT(A) has given clear finding that report was forwarded to the Assessing Officer and the Assessing Officer in his report has not rebutted the same - order of the ld. CIT(A)is confirmed. Disallowance of Expenses in full or part – Held that:- Expenses debited to profit and loss account in respect of telephone expenses, charity and donation, car expenses, rebate and discount, printing and stationery, labour welfare & cartage, accounting charges, traveling expenses, entertainment and salary confirmed the disallowance to 25% of the expenses for non production of vouchers – order of CIT(A) is confirmed. Profit margin – Held that:- Although Fall in gross profit is only marginal but it has to be noted that the assessee has not made any compliance before the Assessing Officer and the Assessing Officer pointed out serious defects in the books. Therefore, considering overall circumstances of the case, trading addition should be made at Rs. 10,000/- Order of the ld. CIT(A) is set aside and direct the Assessing Officer to make addition on account of lower gross profit at Rs. 10.00 lakhs - In the result, appeal filed by the revenue is partly allowed
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