9911796707
TMI Blog2018 (4) TMI 1518X X X X Extracts X X X X X X X X Extracts X X X X ..... erunder section 143(3) of the Income Tax Act, 1961 (hereinafter referred to as the 'Act') dated 27. 03. 2014. 2. Since these cross-appeals relate to the same assessee, same assessment year, and identical issues are involved, therefore, these have been clubbed and heard together and a consolidated order is being passed for the sake of convenience and brevity. 3. The Grievances of the assessee are as follows: "1. For that the order of the forum below is arbitrary, illegal, unjustified and erroneous and has been passed on improper application of mind being devoid of merit as such deserves to be quashed in limine. 2. For that the entire assessment order along with the appellate order deserves to be quashed and the returned income deserve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t from somedisallowance of expenses on percentage basis. 2. In the facts and circumstances of the case, the Ld. CIT(A) has erred restricting addition toRs. 2,59,70,386/- instead of Rs. 3,12,56,067/- as determined by AO when he failed to point out anyspecific defect in the assessment made by AO. 3. The appellant craves leave, to add, alter or amend any ground of appeal raised above at the time ofhearing. " 5. In these appeals, the main grievance of the assessee is that the ld. CIT(A) was erred in restricting the net profit rate of 37. 97% on estimation basis whereas the returned income of the assessee deserved to be accepted. The Solitary grievance of the Revenue is that the CIT(A) was erred in reducing the net profit percentage from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee for third party confirmation etc. Therefore, the Assessing Officer noted that since the assessee had not submitted any books, bills, vouchers etc. during the assessment proceedings and looking to the complexity of accounts, which had been pin-pointed by the Assessing Officer, it was appropriate to reject the books of accounts and made the addition based on the net profits rate of the assessee company. The Assessing Officer worked out the net profit rate @45. 74%(pin pointed mistake at Rs. 3,30,54,997/- vis a vis turnover of Rs. 7,22,67,157/-). 7. On appeal by the assessee, the ld. CIT(A) restricted the addition ofnet profit at 37. 93%. The ld. CIT(A) observed that Assessing Officer worked out net profit rate @45. 74% which was not suppo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the past years profitability of the assessee company to restrict the net profit ratio at the rate of 37. 93% and the said profit rate is arbitrary and excessive. 9. On the other hand, the ld. DR for the Revenue, has primarily reiterated the stand taken by the Assessing Officer, which we have already noted in our earlier para and is not being repeated for the sake of brevity. 10. We have given a careful consideration to the rival submissions and perused the materials available on record, we note that the Assessing Officer has pin pointed various inadmissibility in the assessment order, such as claim of personal expenses, non-submissions of details, nonsubmissions of details relating to purchase & sale, closing stock, nonsubmission of proo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pany and if the past profitability of the assessee company is not available, the Assessing Officer should bring on his record the comparable businesses where the similar business or activities were carried on, to adopt the net profit ratio. Therefore, we are of the view that it would be appropriate to remit the said issue back to the file of the Assessing Officer with a direction to work out the assessee's past profitability history and also the comparable of the similar business entities working in similar products and similar environment. We also direct the assessee to produce the past results of the assessee company and comparable cases to prove his bona fide. Therefore, we set aside the order of the ld. CIT(A) and remit the issue back t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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