9911796707
TMI Blog2019 (12) TMI 369X X X X Extracts X X X X X X X X Extracts X X X X ..... sment was framed by the Asst. Commissioner of Income Tax, Circle-25(3), Mumbai (in short ACIT/ AO) for the A.Y. 2015-16 vide order dated 29.12.2017 under section 143(3) of the Income-tax Act, 1961 (hereinafter 'the Act'). 2. The only issue in this appeal of Revenue is against the order of CIT(A) deleting the addition made by the Assessing Officer by holding that the assessee's firm is into the manufacturing of chemicals which is not been mentioned by assessee in his book of account but is part of audit report. For this, Revenue has raised following three grounds: - "1. On the facts and circumstances of the case and in law, the Ld. CIT(A) has erred in deleting the addition made by the AO of Rs.2,62,92,142/- 2. On the facts and in the ci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ated closing stock of Rs. 2,62,92,142/- being manufacturing stock. The assessee explained before the Assessing Officer that in view of the information regarding manufacturing details there was a typographical error due to computer cut and paste operation switching between the files, while preparing audit report in form No. 3CD clause 10A,11,35(aB) and 35(bB). It was explained that due to that error, the details of another assessee are posted in the said form of the assessee and it is not a manufacturer firm. For this, he gave various explanation but the Assessing Officer did not accept. The assessee explained that there is no manufacturing details, no manufacturing account and it is not registered with Central Excise and Customs but the Ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... manufacturer, supplier and exporter of superior quality of industrial chemicals. In the home page of the website manufacturing activity of the assessee is written in bold letters and specifically highlighted. The assessee also posted screen shot of the website, hence for advertisement only). Accordingly, the Assessing Officer made addition of the closing stock at Rs. 2,62,92,142/- being 3% of the turnover of Rs. 87,64,04,735/-. Aggrieved, assessee preferred the appeal before CIT(A). The CIT(A) deleted the addition by observing in Para 5.11 as under: - "5.11 In view of the above submission and discussion, the assessing officer has not specified for reasons of rejecting the books of accounts. The AO should recorded clear findings that corr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ection 44AB of the Act. The audit report was uploaded hurriedly for filing the return on last date 30.09.2015. While uploading the report in Form 3CB/3CD, there was typographical error due to switching between two different clients' screens simultaneously, as a result the data of the other client was cut and pasted in Clause 10(a) and 11 and corresponding Clauses 35bA and 35bB in the assessee's report. The above typographical error was explained to the AO by letter dated 20.12.2017 along with other proof that the dealer is not a manufacturer having stock of raw materials and finished goods. It was conveyed that the Books of Accounts and Final Accounts did not show any manufacturing account. No manufacturing expenses such as wages, processi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... have any factory/ godown. The accounts were subject to audit Under section 44AB of the Act. The audit report was uploaded hurriedly for filing the return on date 30.09.2015. While uploading the report in Form 3CB/3CD, there was typographical error due to switching between two different clients', screens simultaneously, as a result the data of the other client was cut and passed in Clause 10(a) and 11 and corresponding clauses 35bA and 35bB in the assessee's report. The above typographical error was explained to the AO vide letter dated 20.12.2017 along with other proof that the dealer is not a manufacturer having stock of raw materials and finished goods. The books of accounts and final accounts did not show any manufacturing account. No ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... duties to assist a taxpayer in every reasonable way, particularly in the matter of claiming and securing reliefs and in this retards, the Officers should take the initiative in guiding a taxpayer where proceedings or other particulars before them indicate that some refund or relief is due to him. It is evident from the comparative gross profit net profit and sales ratio of the firm that appellant has consistently improve in terms of sales and net profit over a period of time. After considering the totality of facts, rival submissions, the applicable law and on the basis of discussion mentioned above. I find force in the argument of the appellant and draw strength from the judicial decision, it is difficult to accept that the books of accoun ..... X X X X Extracts X X X X X X X X Extracts X X X X
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