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2017 (6) TMI 2 - ITAT MUMBAIDiscrepancies in the books of accounts - import purchases of 53,410 kg. not found recorded in the import register - AO has rejected books of accounts of the assessee and estimated gross profit at 10% in place of gross profit 3.8% shown by the assessee - Held that:- We found that in the A.Y.2010-11, assessee has made GP of 4.55% in the year 2011-12, 4.02% and during the year under consideration at 3.87%. Looking to the amount of sale vis-à-vis GP disclosed by the assessee, and deficiency pointed out by AO and reply filed by assessee needs to be considered afresh in the light of documentary evidences alleged to be filed before him. It is clear that AO has not properly appreciated the evidence filed before him. We found that CIT(A) has also not dealt with the issue on merit and has just relied on the findings of the AO without addressing the reply filed by the assessee and without considering the documentary evidence in support of the same. In the interest of justice and fair play, we set aside both the orders of the lower authorities and restore the matter back to the file of the AO for deciding afresh after considering the documentary evidence filed in support of the short comings pointed by him which was produced by learned AR during the course of hearing before us as well as before the CIT(A) during the appellate proceedings. Appeal of the assessee is allowed for statistical purposes.
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