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2015 (10) TMI 1001 - ITAT DELHI

2015 (10) TMI 1001 - ITAT DELHI - TMI - Unexplained investment in stock - CIT(A) deleted the addition - Held that:- The additional evidence admitted by the Ld. CIT(A) in the form of delivery challans issued by the supplier M/s Liberty Hosiery Mills Pvt. Ltd. These evidences and the discrepancies pointed out by the A.R. in the evidences collected by the AO form the supplier, lead him to arrive at a considered view that the goods were supplied by M/s Liberty Hosiery Mills Pvt. Ltd. to the assessee .....

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vt. Ltd. in the month of August, 1998 were exported by the appellant in the same month, there was no stock left with the appellant for further sale after August, 1998. Moreover, the addition has been made on the basis of suspicion, conjectures and surmises, as no evidence has been brought on record by the AO of any domestic sale by the appellant. We find that the AO has only assumed that since the goods worth ₹ 75 lacs were supplied by M/s. Liberty Hosiery Mills Pvt. Ltd. in the month of N .....

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in the month of August, 1998 only and these very goods were exported on 13.08.1998. Therefore, the question of earning any profit on any domestic sale does not arise at all. Hence, Ld. CIT(A) has rightly deleted the said addition. - Decided in favour of assessee.

Recalculate the deduction u/s. 80HHC - assessee has challenged the incorrect computation of the deduction admissible u/sw. 80HHC of the Act, which was restricted to ₹ 1.75 crores as against the original claim of the ass .....

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sidered at the time of original assessment. In the rejoinder, the AR of the assessee submitted that since all the documents filed along with the application under Rule 46A had been considered at the time of original assessment, the same was also considered by the Ld. CIT(A) after considering the Remand Report and the Rejoinder of the Ld. Counsel of the assessee and rightly allowed the additional evidences filed by the assessee. In our considered opinion, the Ld. CIT(A) has passed a well reasoned .....

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grounds of appeal raised by the Revenue read as under:- On the facts and circumstances of the case and in law the Ld. CIT(A) erred in - 1. Deleting the addition of ₹ 75,00,000/- as unexplained investment in stock. 2. Deleting the addition of ₹ 15,00,000/- as gross profit on sale of the unexplained investment in the domestic market. 3. Directing the AO recalculate the deduction u/s. 80HHC after giving effect to the appellate order. 4. Ignoring the submission of the AO not to accept t .....

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143( 2) dated 17.01.2009 fixing the proceedings for 27.07.2009 was issued on the assessee's address i.e. 8/3, 1st Floor, Sabharawa Marg, Karol Bagh, New Delhi but the same was returned un-served. After that it is noticed that Shri L. D.Gera, the Karta of the HUF has expired and his legal heirs Shn Naveen Garg, son residing in Dubai. After taking proper approval from CIT, Delhi- IX, New Delhi a notice u/s 143(2) alongwith a letter dated 11.09.2009 fixing the proceedings for 24.09.2009 was Is .....

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. Against the order of CIT(A), the department has filed an appeal before the ITAT, the ITAT has restored the matter on the file of AO on the following three issues on which department has filed an appeal in ITAT by giving fresh opportunity to the assessee. Since the assessee has expired and his son were not attended the case proceedings, I have no option but to finalize the assessment proceedings on the basis of the material available on record u/s. 144 of the I.T. Act, 1961. The AO observed tha .....

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Hoisery. ii) Addition of ₹ 15 lacs on account of book profit 20% on sales relatable to stock of ₹ 75 lacs sold in domestic market. iii) Directing to recomputed the deduction u/s. 80HHC. 3.2 AO observed that since the assessee has died and his legal heirs is abroad and has not cooperate with the department, the income of ₹ 1,75,25,024/- as per order u/s. 143(3) dated 27.3.2002 was accepted vide assessment order dated 30.12.2009 passed u/s. 254/144 of the I.T. Act, 1961. 4. Agai .....

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e heard both the parties and perused the relevant records, orders of the revenue authorities and the synopsis filed by the Ld. Counsel of the assessee. 8.1 With regard to ground no. 1 regarding deletion of addition of ₹ 75 lacs on account of unexplained investment in stock is concerned, we find that the additional evidence admitted by the Ld. CIT(A) in the form of delivery challans issued by the supplier M/s Liberty Hosiery Mills Pvt. Ltd. These evidences and the discrepancies pointed out .....

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he Ld. CIT(A) has passed a well reasoned order which does not need any interference on our part, hence we uphold the same and accordingly the ground no. 1 raised by the Revenue stands dismissed. 8.2 With regard to ground no. 2 regarding deletion of addition of ₹ 15 lacs on account of alleged profit 220% on sale of stock of ₹ 75 lacs in domestic market. We find that this issue is related to the earlier issue of purchase of goods worth ₹ 75 lacs from M/s Liberty Hosiery Mills Pvt .....

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ods worth ₹ 75 lacs were supplied by M/s. Liberty Hosiery Mills Pvt. Ltd. in the month of November, 1998 and not in the month of August, 1998, therefore, the asssessee has not only invested unaccounted money in purchase of goods worth ₹ 75 lacs in August, 1998, which were exported and the goods receive by them from the supplier in the month of November, 1998, must have been sold in the local market, earning a profit @ 20%thereon. This theory of the AO has already been discarded, once .....

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ound no. 2 raised by the Revenue stands dismissed. 8.3 With regard to ground no. 3 regarding directing the AO to recalculate the deduction u/s. 80HHC after giving effect to the appellate order, we find that the assessee has challenged the incorrect computation of the deduction admissible u/sw. 80HHC of the Act, which was restricted to ₹ 1.75 crores as against the original claim of the assessee at ₹ 2.48 crores. Therefore, the Ld. CIT(A) has rightly directed the AO to recomputed the d .....

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