2011 (1) TMI 583

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ading sales and assessing the profit accordingly. The AO has also been reasonable in determining the profits on the basis of the rate of profit disclosed by the assessee in respect of trading of timber other than sales on consignment.
MR. JUSTICE ADARSH KUMAR GOEL, MR. JUSTICE AJAY KUMAR MITTAL, JJ. Mr. Akshay Bhan, Advocate for the appellant. Mr. K.K. Mehta, Standing Counsel for the respondents. ADARSH KUMAR GOEL, J. 1. This order will dispose of I.T.A. Nos.338 to 342 and 514 of 2005, as all the appeals filed by the assessees involve common questions relating to validity of reassessment proceedings. 2. I.T.A. No.338 of 2005 has been preferred by the assessee under Section 260-A of the Income Tax Act, 1961 (for short, "the Act") .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... osed investment in trading activities. The CIT(A) set aside the reopening of the assessment following earlier order in some other cases wherein assessment was framed under Section 143(3) of the Act and reassessment proceedings were initiated without obtaining necessary sanction under Section 151(1) of the Act. On appeal by the revenue, the Tribunal set aside the order of the CIT(A) and restored that of the Assessing Officer and held that sanction under Section 151(1) was not required where assessment was made under Section 143(1)(a) of the Act when initiation of reassessment was within the statutory period. The finding of the Tribunal is as under:- "19. In the case of M/s Bharat Trading Co. and M/s Assam Timber Store, the AO had received .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ds had been sold on commission basis and since on enquiry also the parties were not found to exist, the AO was justified in treating the commission sales as trading sales and assessing the profit accordingly. The AO has also been reasonable in determining the profits on the basis of the rate of profit disclosed by the assessee in respect of trading of timber other than sales on consignment. Since the determination of profit made by the AO is reasonable, we, in the case of M/s Bharat Trading Co. restore the additions of Rs.1,08,620 for the assessment year 90-91 and Rs.69,420 for the assessment year 91-92 and in the case of M/s Assam Timber Store restore the additions of Rs.8500/- for the assessment year 90-91 and Rs.19,250 for the assessment .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X