2015 (6) TMI 1177

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..... 4, Mumbai, the assessee has raised following Grounds of Appeal: "1.The CIT(A) has erred in confirming the action of Assessing Officer in rejecting the book results and estimating the net profit at 5% of the total turnover of the appellant." Vide its application dt.2/6/15, the assessee has made an application for admission of additional evidences. In its application the assessee has stated that i .....

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..... s of Rule 29 of the ITAT Rules, 1963. The Departmental Representative (DR) left the issue of the admission of the additional evidence to discretion of the Bench.We have perused the material on record and found the evidence produced by the assessee would have bearing on the final outcome of the appeal. Therefore, same are being admitted u/r.29 of the ITAT, Rules. 2.Assessee-firm, engaged in the bu .....

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..... oks of account or were not maintained as per the accounting standards. Invoking the provisions of s. 145(3) he estimated the net profit of the assessee at 5% of the total turnover. 3.Aggrieved by the order of the AO the assessee preferred an appeal before the FAA.Before him,it was contended that the AO had passed the order u/s. 144, that the same was defective and bad in law, that the AO had admi .....

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..... t the assessee had not produced books of account, that the AO had rightly invoked the provisions of s.143(3) of the Act. Relying on the order of Kanchwalla Gems (288 ITR 10) the FAA, held that the AO had rightly estimated the net profit @5% of the turnover. Finally he dismissed the appeal filed by the assessee. 4.Before us,the AR stated that assessee was in possession of books of account as well .....

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..... matter should be restored back to the file of the AO for fresh adjudication. He is directed to afford reasonable opportunity of hearing to the assessee. The assessee is directed to produce all the documents/books of account before the AO. The effective ground of appeal filed by the assessee is allowed in favour of the assessee in part. As a result,appeal filed by the assessee stands partly allow .....

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