TMI Blog2010 (12) TMI 775X X X X Extracts X X X X X X X X Extracts X X X X ..... ustified - In the absence of any reference to the material on record, there is no other option with this court except to set aside the orders under appeal and remand the matter to the CIT (A) to examine the same afresh. - I. T. A. Nos. 449, 457 and 478 of 2006 - - - Dated:- 6-12-2010 - MR. JUSTICE ADARSH KUMAR GOEL, MR. JUSTICE AJAY KUMAR MITTAL, JJ. Mr. K.L. Goyal, Senior Advocate with Mr. Sandeep Goyal, Advocate for the appellant. Mr. Vivek Sethi, Advocate for the respondent. AJAY KUMAR MITTAL, J. 1. This order shall dispose of ITA Nos. 449, 457 and 478 of 2006 as common questions of law and facts are involved therein. For brevity, the facts are being extracted from ITA No. 478 of 2006. 2. This Court vide ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... return was filed showing gross payments of Rs.61,36,300/- as against Rs.27,42,891/- shown in the original return. Against the original returned income of Rs.1,09,890/-, the assessee filed return showing an income of Rs.3,94,900/-. Accordingly, the Assessing Officer accepted the return of income wherein the receipts were shown applying the net profit rate of 8%. The Commissioner of Income Tax, Jalandhar while exercising the powers under Section 263 of the Act vide order dated 18.11.1999 set aside the order of the Assessing Officer and directed that the assessment be made after a detailed investigation including the details of expenditure incurred as per Trading Account originally filed and admissibility of claim of interest paid to the part ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the total receipt may kindly be effected to bring it at par to the net profit rate as applied in subsequent years. 2.3 After considering the submissions from both the sides, I find that the receipts for the year as declared in the revised return take the case out of the purview of section 44AD. It was a case where neither any books were maintained nor any vouchers were produced. Therefore, application of net profit rate 8% is ruled out and in this regard, I do not find merits in submissions of appellant. By applying said rate in reasons to believe the AO worked out though income of Rs.1,09,541/- having escaped assessment because at that time the receipts as per TDS certificates were below Rs.40 Lacs but appellant filed return with recei ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... above facts and the circumstances, we are of the view that the matter in detail has been considered by this Tribunal in the subsequent assessment years 1995-96 and 1996-97 vide order dated 22.08.2005 in which the order of the CIT(A) was confirmed for the two years and enhancement was confirmed. The relevant paras 22 and 23 are reproduced as under: 22. Now we take up the assessee's appeal. The assessee challenged the application of net profit of 13% as enhanced by the CIT(A). It is an admitted fact that the books of accounts of the assessee are not reliable. Same were, therefore, rightly rejected by the authorities below. In the assessment year 1994-95, the assessee has accepted and applied the net profit rate of 10%. The assessee in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the gross receipts from the department and accordingly manipulated the entries in the books of accounts and further, some of the payments made for purchases were not accounted for in the books of accounts. Therefore, it was a fit case for enhancement of the income of the assessee. The CIT(A) rightly exercised the jurisdiction in view of the peculiar facts of the case. Nothing is pointed out to us that similar were the facts in the assessment year 1997-98 in the case of the same assessee or in other years. It is also not pointed out that in the orders referred to by the learned counsel for the assessee, similar were the facts. Considering the above discussion, we are of the view that the CIT(A) has rightly enhanced the application of net pro ..... X X X X Extracts X X X X X X X X Extracts X X X X
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