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2015 (7) TMI 597 - ITAT AHMEDABADDisallowance of loss - rejection of books of accounts - the assessee sold the diamonds worth ₹ 3,76,70,953/- out of the opening stock of the year for an amount of ₹ 2,40,08,065/- and had claimed loss of ₹ 1,36,62,888/- - Held that:- Disallowance of loss cannot be made on the ground that in the preceeding assessment year, the assessee accepted the disallowance of loss on sale of diamonds as each assessment year is a separate unit of assessment. The Assessing Officer is expected to carry out verificationof the claim of the assessee with the evidences produced before him and thereafter arrive at the independent conclusion about the allowability or disallowability of the claim expenditure or loss. Further, in the year under consideration the assessee filed copies of sales invoices with the complete address of the parties and their PAN Nos., No adverse material was brought on record by making due inquiry. Further the contention of the assessee is also that the sale consideration was received by the assessee through banking channel. The A.O. has brought no material on record after examining the parties to whom the sales were made by the assessee to show that the assessee has under invoiced the sale of diamonds or that the sales invoiced do not reflect the correct sale-price of the diamond. Thus A.O. as well as the CIT (A) were not justified in disallowing the loss of ₹ 1,36,62,888/- to the assessee. - Decided in favour of assessee. Addition under section 50C - A.O. made an addition on the ground that the assessee sold property during the year and the sale proceeds was shown at ₹ 55,000/-. A.O. observe that the assessee did not submit copy of saledeed and therefore, he made a reverse calculation by taking the percentage of Stamp Duty at 4.9% as based in sale as per Stamp Valuation Authority and arrived at the value of ₹ 3,38,755/- and thereby made addition for difference amount of ₹ 2,83,775/- - Held that:- We find that the contention of the assessee was that no show cause notice was issued to the assessee and therefore, the assessee was prevented from explaining its case before the A.O. It was the argument that there was violation of principle of natural justice by the A.O. and hence the addition made by the A.O. and confirmed by the CIT (A) was not justified in the above facts and circumstances of the case we are of the considered opinion that the matter should be restored back to the file of the A.O. to readjudicate the issue afresh after allowing reasonable and proper opportunity of hearing to the assessee. The assessee is also directed to file all the relevant details and documents before the A.O. as and when called upon by the A.O. - Decided in favour of assessee for statistical purpose.
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