2012 (3) TMI 121

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..... The only issue arises for consideration is estimation of profit. Shri TM Sreedharan, the ld.senior counsel for the assessee submitted that the assessee is a wholesale dealer in rice , cement, ACC sheet and provisions. There was survey u/s 133A of the Act on 06-12-2006 and the department has impounded books of account and other related material. Referring to the assessment order, the ld.representative submitted that the assessing officer estimated the net profit at 2% without giving any opportunity to the assessee. According to the ld.representative, the assessment was framed u/s 144 of the Income-tax Act. When the assessment was framed u/s 144 of the Income-tax Act ex parte, the assessing officer has to give a pre-assessment notice. Accord .....

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..... account when the books of account were admittedly impounded by the assessing officer. The fact remains is that the assessee had no occasion to putforth his case before the assessing officer, therefore, giving one more opportunity to the assessee may not prejudice the interest of the revenue in any way. In our opinion, giving one more opportunity to the assessee would definitely promote the cause of justice. Therefore, this Tribunal is of the opinion that the assessing officer has to give one more opportunity to the assessee before framing the assessment. Accordingly, the orders of the lower authorities are set aside and the issue is remitted back to the file of the assessing officer. The assessing officer shall give reasonable opportunity .....

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..... rdance with law without being influenced by any of the observations made by this Tribunal. 8. Now coming to the appeals in ITA No.150 & 151/Coch/2010, the assessing officer levied penalty u/s 271(1)(c) of the Act. Since the quantum appeals are set aside and the issue is remitted back to the file of the assessing officer for reconsideration, this Tribunal is of the opinion that the assessing officer has to reconsider the levy of penalty after completing the assessment. Accordingly, the orders of the lower authorities are set aside and the issue of levy of penalty is remanded back to the file of the assessing officer. The assessing officer shall examine the levy of penalty after completing the assessments and decide the same in accordance wi .....

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