TMI Blog2014 (8) TMI 876X X X X Extracts X X X X X X X X Extracts X X X X ..... rofit rate as decided in Saraya Engineering Works Vs. CIT [1986 (12) TMI 24 - ALLAHABAD High Court] - The matter needs deep investigation - The CIT had rightly passed an order u/s 263 of the Income Tax Act, where he had directed the AO to make a fresh assessment order - The Tribunal has set aside the order without examining the facts of the case – the order passed by the Tribunal is set aside and the matter the order passed by the CIT u/s 263 is restored – Decided in favour of revenue. - Income Tax Appeal No. - 456 of 2005 - - - Dated:- 28-8-2014 - Hon'ble Tarun Agarwala And Hon'ble Dr. Satish Chandra,JJ. For the Appellant : S. C.,A. N. Mahajan, B. Agrawal For the Respondent : S. D. Singh ORDER (Per Hon'bl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he revenue. So, he set aside the assessment order and directed the A.O. to make a fresh assessment order. Being aggrieved, the assessee has filed an appeal before the Tribunal, who has set aside the order passed by the CIT under Section 263 of the Income Tax Act. Not being satisfied, the Department has knocked the doors of this Court. With this background heard Shri Dhananjay Awasthi, the learned counsel for the appellant-Department, who has justified the order passed by the CIT under Section 263 of the Income Tax Act. He submits that no details of work in progress were maintained. No inventory of closing stock in the form of semi finished buildings, finished buildings, raw materials etc. were found on record. The books of accounts wer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s, but the same was never found. The explanation given by the assessee that cash was taken by the partners, who have spended, is not acceptable. The money belongs to the firm and it was not the money of the partners. The accounts were not completed at the time of survey. Vouchers regarding the various expenses were not available, so the books of accounts were likely to be rejected. But the A.O. has not done. Further out of sale of 30 flats against the consideration of ₹ 1,26,05,000/-, the assessee has shown the net profit of ₹ 71,8905/-, which is meager one and does not appear to be reasonable by looking the commercial reality. Most of the expenses were incurred in cash. It may be mentioned that the income has to be computed by ..... X X X X Extracts X X X X X X X X Extracts X X X X
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