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2015 (6) TMI 255 - AT - Income TaxReopening of assessment - suppression of sales - CIT(A) deleted the addition - Held that:- the failure of the assessee to produce books of account on the ground that the books of account were stolen from factory premises cannot be ignored because in absence of books of account the A.O. was left with no alternative but to estimate the turnover and the suppressed income and undisclosed investment on the basis of specific information received from the BOI. It is also observed that the assessee has accepted the decision of the AO. regarding addition of undisclosed income from suppressed turnover so far as no cross objection has been taken before the ITAT on this issue despite the fact that the Ld. CIT (A) has not dealt with the specific ground taken by the assessee before the Ld. CIT (A) on this issue. It was contended by the Ld. counsel that since the addition to business income on suppressed profit was covered by deduction u/s. 80-IA the addition was not pursued in appeal before us, cannot be considered correct because despite deduction u/s. 80-IA specific grounds were taken before the Ld. CIT (A) challenging the estimation of suppressed sales and undisclosed profit. The Ld. CIT (A) has failed to deal with this ground of appeal and the assessee has not raised this issue which implies that estimation of suppressed turnover and profit thereon is acceptable. Once that estimation of suppressed turnover and undisclosed profit thereon is accepted, it is very logical that unexplained investment in purchases is estimated for the purpose of relevant assessment. CIT(A) could have exercised his coterminous powers and should have caused the enquiries to be made documents requisitioned and provided proper opportunities to the assessee and decided the issue on merits rather than deleting the addition on technicalities. In the interest of justice and fair play we are therefore, of the opinion that the issue is required to be restored to the file of the Ld. CIT (A) for fresh adjudication after making necessary enquiries or causing the enquiries made from the BOI requisitioning the relevant documents and providing proper opportunity to the assessee. - Decided in favour of revenue for statistical purposes.
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