9911796707
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Issues involved: Appeal against CIT(A) order for assessment year 1999-2000, rejection of book results, additions under various heads, computation of income, adoption of gross profit rate.
Summary: The revenue appealed against the CIT(A) order for assessment year 1999-2000, challenging the rejection of book results and additions made by the Assessing Officer. The CIT(A) held that once the book results were rejected, income had to be estimated by adopting a suitable gross profit rate, leading to the deletion of all additions. The revenue raised specific grounds of appeal against each addition made and deleted by the CIT(A). Upon careful review, it was noted that the issue in dispute was similar to a previous ITAT order, where the Assessing Officer had referred to separate additions in previous assessment years. The CIT(A) had ruled that no separate addition was necessary when the books of account were rejected, and the profit had to be estimated using a GP rate. The Tribunal had upheld a 6.50% GP rate in previous assessment years, which was followed in the present assessment year. The revenue failed to counter this argument. Considering all facts and circumstances, it was found that the return of income was filed declaring a total income, and the assessment was reopened under section 148 based on similar reasons from previous years. The estimation of profit at 8% by the CIT(A) was higher than previous years but was deemed appropriate based on the circumstances. The order of the CIT(A) was upheld as it was in line with the Tribunal's previous orders and the Assessing Officer's stand. Therefore, the appeal of the revenue was dismissed, and the order was pronounced on 15.07.2011.
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