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2022 (4) TMI 1392 - HC - Income TaxRejection of books of accounts - Percentage of gross profit of an assessee on being unsatisfied as to the correctness of the accounts - whether the percentage of gross profit as determined by the Commissioner of Income Tax (Appeals) – 11, Kolkata [CIT(A)] at 40 per cent was justified or not? - HELD THAT:- Assessee was not put on specific notice that the gross profit should have been determined at 40 per cent qua their claim of gross profit at 57.01 per cent. Thus, the best course that should have been adopted by the CIT(A) was to remand the matter back to the assessing officer to re-do the assessment and issue certain guidelines or on the other hand directed the assessing officer to submit a remand report. CIT(A) did not adopt either of these two courses but proceeded to determine the gross profit once again by way of guess work which in our opinion was incorrect in so far as the AO had completed the assessment. As pointed out earlier the tribunal has not given any independent reason for affirming the order of the CIT(A). Thus, taking note of the peculiar facts and circumstances of the case, we are of the considered view that the matter should be remanded back to the assessing officer to consider only the aspect as to whether the denial of the gross profit to the extent of 17.01 per cent by the CIT(A) as affirmed by the tribunal was correct or not. In this regard, the assessee should be given an opportunity by the assessing officer to place the records and documents to justify that the gross profit as determined by them at 57.01 per cent was correct. We make it clear that whatever relief granted by the CIT(A), namely, determination of gross profit at 40 per cent cannot be altered and the same stands affirmed and what remains is only to consider as to whether the remaining amount of gross profit, namely, 17.01 per cent of which relief was denied to the assessee by the CIT(A) which requires to be considered by the assessing officer. Appeal is allowed.
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