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2014 (2) TMI 1329 - AT - Income TaxN.P. determination - rate of NP Adopted - rejection of books of accounts - Held that:- CIT(A) has not given any finding with regard to the applicability of net profit rate by the AO which shows on one hand he accepts the decision of the AO and on the other hand simply by accepting the submission of the assessee that too without confronting to the AO and without asking the remand report of the AO and relying upon the decisions which are comparable or not comparable to the present facts and circumstances of the case, proceeded to apply net profit rate of 6% for the reasons best known to him. In the facts and circumstances, the order of the ld. CIT(A) cannot be accepted and is bad in law in the present facts and circumstances of the case, for the reasons mentioned hereinabove. The order of the ld. CIT(A) is directed to be reversed and that of the AO is restored , who has applied net profit rate of 10% on the gross receipts - Decided in favour of revenue. Addition being cash credits u/s 68 - Held that:- CIT(A) himself has just accepted the submission of the assessee and that too without confronting to the AO and without calling the remand report of the AO. Thus, the decision of the ld. CIT(A) is against the facts of the case, which in fact, has not been brought on record i.e. whether loans pertain to the impugned year or to the preceding year. It will be in the interest of justice, if the matter is set aside to the file of the AO, who will examine the issue whether the said loans pertain to the impugned year or to the preceding year. Whether the loans are genuine and whether at all, the same can be treated as income under section 68 or not but by providing adequate opportunity to the assessee. AO is accordingly directed to decide the issue denovo as regards the disallowance but by providing adequate opportunity of being heard to the assessee. - Appeal of revenue is partly allowed for statistical purposes.
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