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2022 (2) TMI 380 - AT - Income TaxReopening of assessment u/s 147 - G.P. addition after applying G.P. @ 9.5% on a sum being cash deposit in Bank account - HELD THAT:- The reasons recorded on 21.03.2016 has categorically mentioned that R.K. Traders is a proprietary concern of the assessee which has business dealings with M/s. Wonder Packaging Industries as the business premises of M/s. Wonder Packaging Industries is used by the assessee (his proprietary firm). The assessee has filed return of income in the year 23.02.2011 but has not mentioned this particular issue/income in the said return related to the transactions. In fact, in respect of notice under Section 148 of the Act, the assessee opted that the said earlier return filed in February 2011 should be taken as it is. The reopening was done with the prior approval and proper satisfaction and the legal viable reasons. Therefore, the contention of the assessee that the notice issued under Section 148 of the Act itself is bad in law and is not sustainable. Quantification of the actual G.P - Quantification before the AO given by the assessee as well as the calculations done by the Assessing officer both seems to be unclear and the basis of G.P. has to be taken into account. No past historical figures were produced before us. Therefore, it will be appropriate to remand back this matter to the file of Assessing Officer for proper adjudication and quantification of the actual G.P. Needless to say the assessee be given opportunity of hearing by following principles of natural justice - Appeal of the assessee is partly allowed for statistical purposes.
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