9911796707
TMI Blog2022 (5) TMI 439X X X X Extracts X X X X X X X X Extracts X X X X ..... er dated 05.02.2020 passed by the Commissioner of Income Tax (Appeals)-22, Mumbai relevant to the A.Y.2014-15. 3. The revenue has raised the following grounds: - "1. On the facts of the case and in law the Ld. CIT (A) has erred in deleting the addition on account of estimated income of Rs.7,10,84,339/- and other income of 18,69,92,012/- in addition to the returned incomes. 61,74,110/-." 2. "On the facts of the case and in law the Ld. CITA) has erred in confirming that the Assessing Officer has not provided sufficient opportunity of being heard to the appellant before rejecting books of accounts and the Ld. CIT(A) has erred in rejecting the fact, in the findings of the AO that the book result of the appellant is not correct." 3. "On ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Act. The expenses were estimated to the extent of 10% of the profit and accordingly the addition was made and the total income of the assessee was assessed to the tune of Rs.26,42,51,360/-. Feeling aggrieved, the assessee filed an appeal before the CIT(A) who allowed the claim of the assessee but the revenue was not satisfied, therefore, the revenue has filed the present appeal before us. 5. All the issues are in connection with the allowance of claim of the assessee. Before going further, we deem it necessary to advert the finding of the CIT(A) on record: - "3.4.1 I have considered the facts of the case, findings of the AO and submissions made by the appellant. It's an undisputed fact that the appellant is a Category-l Merchant B ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ofit/loss as per the financial statement 31,270,891 21,141,153 Profits & gains from business 868,547 6,174,409 As is evident from the table above, the finding of the AO is factually incorrect. There has been an increase of 23.05% in the revenue from operations as compared to the previous year and an increase of 14.85% in the expenses vis-a-vis the operating expenses of the previous year. The AO was asked to comment on this fact and also the submission of the appellant. However, in his reports dated 29.01.2019 and 26.08.2019, the AO has stated that he cannot give afresh findings in the matter of assessment of income, on the same material that was filed before his predecessor AO on which a view was taken by the erstwhile AO. 3.4.2 In v ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat there was substantially increase in the expenses, is not itself sufficient to reject the claim of the assessee. No specific reason of any kind was recorded. There is nothing on the file to which it can be assumed that on which grounds the books of account are not acceptable. The CIT(A) asked the remand report from the AO but there was no plausible explanation to reject the claim of the assessee. The appellant had entered into an Advance Pricing Agreement (APA) with the Central Board of Direct Taxes for its transactions with associate Enterprises and this year is one of the rollback year in the APA already signed. The books of accounts and the financial result of appellant have already been examined and accepted that the APA. Nothing cam ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d and without providing sufficient opportunity of being heard by rejecting the book results of the Respondent; 3. erred in objecting the order of learned CIT(A), on the false ground that the Respondent had not submitted the details and books of accounts in the assessment proceedings (including remand proceedings), without appreciating that all information and books of accounts were furnished in the assessment proceedings and acknowledged by the AO in the remand proceedings; II On the facts and in the circumstances of the case and in law the learned CIT(A) / AO has: 4. without prejudice to the department's appeal and cross objections 1-3 above, if department appeal is allowed then relief should be provided on account of double addition ..... X X X X Extracts X X X X X X X X Extracts X X X X
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