TMI Blog2017 (1) TMI 1798X X X X Extracts X X X X X X X X Extracts X X X X ..... sale bills causing loss to the State Government exchequer. The presumption is that the alleged purchases of materials is done without bills. Accordingly, we confirm the addition to the extent of 7% of the said purchases of Rs. 53.16 lakhs. Addition should be restricted. Accordingly, AO is directed. Thus, the ground is partly allowed. Addition on account of commission - argument of the assessee that CIT (A) enhanced assessment without giving a notice or an opportunity to the assessee - HELD THAT:- This issue is not settled and the additions of this kind are unsustainable in law in view of the judgments in the cases of Bikram Singh [ 2016 (4) TMI 822 - ITAT DELHI] , Apex Court judgment in the case of CIT vs. Shapoorji Pallonji Mistry [ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... said order of the AO / CIT (A), assessee is in appeal before us. 3. During the proceedings before us, at the outset, Ld Counsel for the assessee submitted that the officers did not follow the binding judgments on the issue viz Nikunj Eximp Enterprises Pvt Ltd (supra) and Simit P Seth (supra) and proceeded to make entire purchases giving no sustainable reasons for the non-compliance of the said decisions. 4. On the other hand, Ld DR for the Revenue relied on the orders of the Revenue Authorities. 5. After hearing both the parties, we find, the assessee s Net Profits (NP) over the years vary from 2% to 2.35% and the VAT rate applicable is 4%. Considering the above factual matrix of the present case, we are of the opinion, the additi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... enhancement, if any, in the assessment is granted. In our view, this issue is not settled and the additions of this kind are unsustainable in law in view of the judgments in the cases of (i) Bikram Singh vs. DCIT, ITAT Delhi, ITA No. 3522/Del/2013; (ii) Apex Court judgment in the case of CIT vs. Shapoorji Pallonji Mistry, 44 ITR 891 (SC) and (iii) CIT vs. Rai Bahadur Hardutroy Motilal Chamania (66 ITR 443). Admittedly, the CIT (A) made this enhancement of assessment without granting opportunity to the assessee. Effect of this failure results in deletion of the enhancement. Accordingly, this part of the ground is allowed in favour of the assessee. 7. In the result, appeal of the assessee partly allowed. Order pronounced in the open cou ..... X X X X Extracts X X X X X X X X Extracts X X X X
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