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2022 (10) TMI 1139 - ITAT CUTTACKAdmission of the additional evidence in the form of 44AB report by the ld CIT(A) - unexplained sales - export sales value provided by the assessee is different from the FOB value - HELD THAT:- A perusal of the remand report by the AO shows that the AO has not raised any objection in respect of admission of the audit report. In fact, the AO in the report dated Nil has categorically mentioned that other income disclosed in the audit report not taken in the assessment order may be accepted. A perusal of the remand report shows that information provided by the Custom House, Paradeep and the details provided by the assessee was compared and it was found that the total export sales of FOB value for Serajuddin & Co Pvt Ltd.,. and Yajdani International Pvt Ltd., is same for the assessment year 2008-09. The difference is only due to short shipment and wrongly taken for the different assessment years. Then, the AO does the reconciliation and gives findings that the export sales value provided by the assessee is different from the FOB value and as per the assessee’s statement, realisation of sale is on the date of making invoices, when ship start from the Port. The exchange rate on that date decide the export sale value. As per the invoices and exchange rate, the export sale value for the assessment year 2008-09 for the assessee herein is Rs.36,01,28,151/-. To this, if we add the local sales as intimated by the Commercial Tax Authorities of Rs.8,43,40,353/-, the turnover as disclosed by the assessee in 44 AB report at Rs.44,46,37,802/- is reached. As clearly, the 44AB report as admitted by the ld CIT(A) and on which remand report has been called for from the AO had been examined by the AO and same has also found to be substantially correct. The AO having given a finding in the remand report that the auditor’s report u/s.44AB alongwith profit and loss account and balance sheet as submitted by the assessee may be accepted for the reasons mentioned therein, it no more lies in the mouth of the AO to raise a ground in the second appeal that there has been violation of the provisions of Rule 46A. The audit report having also been reconciled with the figures as arrived at by the AO on the basis of communication received from the Commercial Tax Authorities and the Asst. Commissioner, Custom House. we are of the view that the ld CIT(A) has only accepted the remand report of the AO when directing that the figures in the audit report is to be considered in place of figures adopted by the AO in the assessment order. Consequently, we are of the view that the findings of the ld CIT(A) are on right footing and does not call for any interference. Disallowance of the 10% of the administrative expenses and 20% of the commission charges - Admittedly, neither the AO nor the ld CIT(A) has verified any of the expenses. We are live to the fact that clearly 14 years have lapsed from the relevant assessment year and restoring the issue to the file of the AO for examination may be futile. This being so, in the interest of justice, we reduce the disallowance under the head administrative expenses from 10% to 5% and commission expenses from 20% to 10%. .
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