TMI Blog2017 (11) TMI 644X X X X Extracts X X X X X X X X Extracts X X X X ..... on an estimation basis when the books of accounts of the appellant were not rejected. The AO has not analyzed the reason for loss suffered by the appellant. Therefore, in view of the submission of the appellant, it is clear that the appellant is incurring losses on account of business reasons and hence the arbitrarily estimated GP addition is not sustainable. Appellant gets relief under this ground of appeal. - ITA 883/2017 - - - Dated:- 7-11-2017 - MR. S. RAVINDRA BHAT MR. SANJEEV SACHDEVA JJ. Appellant Through: Mr. Rahul Chaudhary, Sr. Standing Counsel with Mr. Sanjay Kumar, Jr. Standing Counsel for appellant. Respondent Through: None. S. RAVINDRA BHAT, J. (ORAL) 1. The question urged by the Revenue, in its appeal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eding need not be considered at this stage because it involves recasting of the segments once again. In view of this, the working of the PLI, namely operating profit on operating expenditure, is restored back. As per the TP report the segment pertain into AE has the following calculations: Table -2 Segment A Associated Particulars 2003-04 Income Sales 4,70,38,487 Total operating Income 4,70,38,487 Expenditure Direct Cost 1,24,70,184 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... intained by the appellant. 7.4 There is no reason for the AO to make an addition on an estimation basis when the books of accounts of the appellant were not rejected. The AO has not analyzed the reason for loss suffered by the appellant. Therefore, in view of the submission of the appellant, it is clear that the appellant is incurring losses on account of business reasons and hence the arbitrarily estimated GP addition of ₹ 12,04,270/- is not sustainable. Appellant gets relief under this ground of appeal. (Relief given ₹ 12,04,270/-) 4. The above findings of the CIT(A) were upheld by the ITAT. The exercise in the opinion of the Court is merely factual. No substantial question of law arises. The appeal is ther ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
