TMI Blog2014 (6) TMI 45X X X X Extracts X X X X X X X X Extracts X X X X ..... the AO in the reassessment proceedings-a fact which persuaded the CIT(A) to set aside the reassessment – no substantial question of law arises for consideration – Decided against Revenue. - ITA 231/2014 - - - Dated:- 21-5-2014 - S. Ravindra Bhat And Vibhu Bakhru,JJ. For the Appellant : Mr. Rohit Madan, Mr. P. Roy Choudhary and Mr. Akash Vajpai. For the Respondent: None. JUDGMENT S. Ravindra Bhat, J (Open Court) 1. The Revenue claims to be aggrieved by the impugned order of the Income Tax Appellate Tribunal (ITAT), whereby the order of the CIT(Appeals), rendered in favour of the assessee was affirmed. 2. The assessee s original return for AY 1998-99 was accepted, it had reported an income of Rs.4,04,930/-. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to produce materials. It was only upon its failure to do so, that the AO resorted to Section 144 and rendered a best judgment assessment in the circumstances of the case. 4. This Court has considered the submissions and findings of the ITAT. As is facially evident, the impugned order, deals with both the failure to issue notice under Section 143(2) of the Act, as well as on the merits. Most importantly, on merits the ITAT said:- 10. The Ld. CIT (A) has also made his observations regarding the non-maintainability of the disallowance made by the AO in the reassessment accepting contention of the assessee in this regard. He has observed that in the assessment in the case of proprietary concern of Shri Rajeev Verma also reopened u/s 148 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e. 2) The AO further observed that Mr. Rajeev Verma claimed illegal draw back and suppliers have confirmed that they have been issued bills for leather bags at inflated value. The assessee objected this allegation with this contention that the draw backs has been claimed as per the law and the suppliers have given bills only for the amount for which the goods have been purchased. It was contended that no statement of the suppliers was made available to the assessee for their confrontation. And as such, such information is not valid piece of evidence. It was argued that even for a moment if it is assumed that the assessee has claimed illegal Draw Back , it will reduce the income of the assessee under the head, Draw Back and it will no ..... X X X X Extracts X X X X X X X X Extracts X X X X
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