TMI Blog2014 (10) TMI 709X X X X Extracts X X X X X X X X Extracts X X X X ..... e Act could not be invoked in the estimation of gross profit – thus, the discretion exercised by the Tribunal is based on relevant consideration and does not suffer from any legal infirmity – as such no substantial question of law would arise for determination – Decided against revenue. - Income-tax Appeal No. 181 of 2014 (O&M) - - - Dated:- 7-10-2014 - Rajive Bhalla And Amit Rawal,JJ. For the Appellant : Ms. Savita Saxena, Advocate ORDER Amit Rawal, J. The revenue has approached this Court by invoking the provisions of Section 260 A of the Income Tax Act, 1961 (hereinafter called the Act ) by challenging the order dated 18.10.2013 passed by the Income Tax Appellate Tribunal, Chandigarh Bench B Chandigarh in ITA N ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Accordingly, the statutory notices as envisaged under the law, i.e., the notices under section 142 (1) and 143 (2) of the Act alongwith the questionnaire were issued and served upon the assessee. The assessee had declared the net profit of ₹ 7,46,920/- against the gross receipts of ₹ 1,47,09,566/- thereby giving the net profit rate of 5.05%. In response to the notices afore-mentioned, assessee filed objections. Besides various objections, the main objection of the assessee was that it had been maintaining the books of accounts as required under Section 44A of the Act which were duly audited under Section 44AB of the Act and the audited balance sheets, profit and loss account alongwith the annexures, the statement of particular ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n relation to the audited financial statements and as per the conciliation statement, the total cash withdrawal, which was disallowed by the Assessing Officer, was actually utilized throughout the year on day to day basis, held, that Assessing Officer presumed entire cash withdrawals utilized by making cash payments which are in violation of Section 40A(3) of the Act and erroneously made exuberant addition. The Tribunal while relying upon the judgment rendered by this Court in case Commissioner of Income Tax Vs. Smt. Santosh Jain (2008) 296 ITR 324 P H, held that where the income of assessee is computed by applying the gross profit rate, there is no requirement to invoke the provisions of Section 40A(3) of the Act, by applying the gross pro ..... X X X X Extracts X X X X X X X X Extracts X X X X
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