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2016 (8) TMI 868 - AT - Income TaxReopening of assessment - non deduction of tds - Held that:- The original assessment was completed U/s 143(3) of the Act on 13/12/2007. Notice U/s 148 of the Act was issued on 25/3/2011 for A.Y. 2005-06, which is after four years from the end of the assessment year. As the assessee has disclosed all the particulars of income in the return as well as audit report and there is no failure on the part of the assessee in disclosing full and true all material facts necessary for his assessment in the assessment year under consideration, therefore, we uphold the order of the ld. CIT(A) on ground No.1. On merit in ground No. 2 of the appeal, the ld CIT(A) had given details findings by considering the amended provisions of Section 40(a)(ia) and the Hon’ble Calcutta High Court decision in the case of CIT Vs. Virgin Creations (2011 (11) TMI 348 - CALCUTTA HIGH COURT ). The assessee had paid TDS deducted on due date of return, accordingly, we uphold the order of the ld CIT(A). Hence, the revenue’s appeals for the A.Y. 2005-06 is dismissed. Trading addition - Held that:- The assessee has not challenged the rejection of books of account before the ld CIT(A) and also before us, therefore, it is admitted fact that the assessee’s books are not reliable. In past, the assessee in A.Y. 2007-08 has been disclosed NP rate @ 7.17% on turnover of ₹ 5.7 crores. In A.Y. 2008- 09, the assessee has disclosed NP rate @ 6.13% on turnover of ₹ 10.00 crores. Now turnover has gone up to ₹ 13.26 crores on which the assessee has disclosed NP rate @ 6.31%, which is better than NP disclosed in immediate preceding year but lower than A.Y. 2007-08. Therefore, under this head, we confirm a lump sum addition of ₹ 5.00 lacs in the interest of justice. Loss assessed by the Assessing Officer as positive income - CIT(A) followed the Hon’ble ITAT Jaipur Bench decision in assessee’s own case for A.Y. 2006-07 where addition has been restricted to ₹ 35,000/- - Held that:- It is undisputed fact that in liquor business, the assessee has shown positive income in A.Y. 2007-08 and 2008-09. However, in A.Y. 2009-10, the assessee had disclosed net loss at ₹ 2,41,520/- and the GP rate compared to A.Y. 2006-07 has gone down whereas sales are more or less same. In A.Y. 2008-09, the assessee had shown total sale of ₹ 82.01 lacs on which the assessee has shown GP rate @ 14.94%. The NP rate also gone in minus compared to preceding year even NP rate of preceding year is applied, the addition goes much more than made by the Assessing Officer, therefore, we reverse the order of the ld CIT(A) and order of the ld Assessing Officer is confirmed. Hence, revenue’s appeal on this ground is allowed.
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