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TMI Blog2018 (5) TMI 1691X X X X Extracts X X X X X X X X Extracts X X X X ..... 961 (hereinafter referred to as "the Act") dated 27/01/2014 relevant to Assessment Year (AY) 2006-07. 2. The Revenue has raised following grounds of appeal: "i) The ld CIT(A) has erred in law and on facts in quashing the order reopening of the assessment u/s 147 of the Act. ii) The ld. CIT(A) has further erred in not deciding the grounds on merits." 3. The interconnected issue raised by the Revenue is that Ld. CIT(A) erred in holding the proceedings initiated u/s 147 of the Act as invalid as well as without deciding the issue on merit. 4. Briefly stated facts are that the assessee in the present case is a Limited Company and engaged in the manufacturing business of ceramics tiles and commission income. The assessee filed its origin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nsaction to income. In our opinion, impugned notice is inherently illegal and invalid and, therefore, it cannot be sustained for the aforesaid reasons. We are inclined to accept this petition and accordingly the petition succeeds and not hereby allowed. The impugned notice dated 20.03.2014 issued by the respondent is hereby quashed and set-aside. Rule is made absolute. No order as to costs." 7. The assessee further submitted that the facts of the case in hand are exactly identical as of the case pertaining to the assessment year 2007-08. Therefore, he prayed to the ld. CIT(A) to quash the assessment order framed u/s 147 of the Act. 8. The Ld. CIT(A) after considering the submission of the assessee quashed the assessment proceedings frame ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y the Commissioner of Incometax( Appeals) and the Income-tax Appellate Tribunal, we are satisfied that the Tribunal was justified n rejecting the application under section 256(1). It cannot be mater of an argument that the amount of sales by itself cannot represent the income of the assessee who has not disclosed the sales. The sales only represented the price received by the seller of the goods for the acquisition of which it has already incurred the cost. It is the realization of excess over the cost of incurred that only forms part of the profit included in the consideration of sales. Therefore, unless there is a finding to the effect that investment by way of incurring the cost in acquiring the goods which have been sold has been made b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t is found that the A.O. has recorded exactly same reasons and satisfaction based on the same facts as recorded in A.Y. 2007-08. Since the facts and circumstances are exactly identical and similar therefore respectfully following the decision of the Hon'ble Gujarat High Court in the case of the appellant in A.Y. 2007-08, the reopening in A.Y. 2006-07 is also quashed. The ground of appeal is allowed. 9. Since the appellant gets relief on the re-opening of the assessment, therefore, other grounds of appeals have not been adjudicated. 10. In the result the appeal is allowed" Being aggrieved by the order of Ld. CIT(A) Revenue is in second appeal before us. Both the parties before us relied on the order of authorities below as favour ..... X X X X Extracts X X X X X X X X Extracts X X X X
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