9911796707
TMI Blog2017 (10) TMI 1002X X X X Extracts X X X X X X X X Extracts X X X X ..... commercial activities which can be categorized into five major groups: Tourism, Construction, Marketing (Trading & Distribution), Industry and Financial Assistance. There are 119 units operating in different parts of the State Uttarakhand and outside. For the AY 2007-08 they have filed the return of income on 31.10.2007 declaring a total income of Rs. 1,17,87,340/- and during the scrutiny AO found that the assessee furnished the return only on the basis of tentative profit and loss account. The assessee has been filed the return of income for every assessment year without complying with the tax audit provisions as enumerated u/s 44AB of the Income Tax Act, 1961 (for short called as the 'Act') and the plea taken by the assessee for the same ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s for the correct figure of net profit for the corporation as a whole. The accounts were got audited by a Special Auditor u/s 142(2A) of the Act. In the light of the Special Auditor Report it was found that by report dated 29.05.2010 the auditors opined that they are unable to express their opinion about the true and fairness of the profit arrived it by the provisional profit and loss account, but as per tentative receipts and payment accounts provided to them the profit as depicted in profit and loss account has been calculated carefully. Out of 11 divisions or activities of the assessee the AO on comparison with the figures relating to the immediately preceding year noticed that there was an increase in GP in respect of 4 divisions/activ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or and lease rent. 3. Challenging the confirmation of the additions assessee is in appeal in ITA No. 4971/2011, whereas challenging the deletions as stated above the Revenue is in appeal before us in ITA No. 4981/Del/2011. 4. At the outset, it could be seen from the record that on some occasions like 10.10.2012, 16.05.2016, 01.09.2016 etc. the adjournments were sought on behalf of the assessee but by and large the assessee does not show any interest in prosecuting the matter and has been continuously absent in spite of several notices being issued. Since it is a matter of 2011, we do not find it just and proper to adjourn it from date to day indefinitely. We hold that the conduct of the assessee does not inspire any confidence that any po ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... agreement with the Ld. CIT (A) because the AO had to take both the increased and decreased in GP rate in respect of all the units as a whole but leaving the profit making units unrewarded it is not fair to pick up only such units where the GP rate is on a fall. No doubt, addition could be made in respect of such units, if the AO finds any specific defect indicating inflation of direct expenses or suppression of receipts. The same method of accountancy had given rise to both rise and fall in the GP rate amongst the divisions of the assessee. In the circumstances, we do not find any justification to interfere with the findings of the Ld. CIT (A) on this aspect, as such, we find that grounds no. 1 to 4 are liable to be dismissed. 5. Now comin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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