9911796707
TMI Blog2012 (3) TMI 121X X X X Extracts X X X X X X X X Extracts X X X X ..... d:- 6-1-2012 - Shri N.R.S. Ganesan, Shri B.R. Baskaran, JJ. Assessee by : Shri T.M. Sreedharan, Sr.Counsel Respondent by: Ms. Vijayaprabha O R D E R Per N.R.S. Ganesan (JM) All these appeals of two independent assesses are directed against various orders of Commissioner of Income-tax(A). Since common issue arises for consideration, we heard all the appeals together and dispose of the same by this common order. 2. Let us first take ITAs No.144 to 146/Coch/2010 for the assessment years 2004-05, 2005-06 and 2006-07. 3. 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fit without any basis. The assessing officer has not taken into consideration the comparable cases. The assessing officer has not taken into consideration the profit ratios of the similarly placed traders in that locality. When the assessing officer estimated the profit it has to be made on the basis of some material. From the material available on record, it appears that the books of account and other materials were impounded. Therefore, it is not known on what basis the assessing officer observed that the assessee has not produced any books of 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, therefo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gard to estimation of profit. The assessing officer estimated the profit at 2% without referring to any of the comparative cases or the profit ratio of the similarly placed traders in that locality. Therefore, in our opinion, the matter needs to be reconsidered after giving reasonable opportunity to the assessee. 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 to the assessee and then decide the same in accordance 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the reasonable cause for the delay in not getting the audit report. Therefore, in our opinion, the matter needs to be factually verified by the assessing officer. Moreover, the quantum addition and the levy of penalty u/s 271(1)(c) were also remitted back to the file of the assessing officer with a direction to consider them afresh. Therefore, for the sake of consistency, the orders of lower authority are set aside and the issue of levy of penalty u/s 271B is also set aside. The assessing officer shall give reasonable opportunity to the assessee and then decide the same in accordance with law without being influenced by any of the observations made by this Tribunal. 10. In the result, the appeals filed by the assessee are treated as all ..... X X X X Extracts X X X X X X X X Extracts X X X X
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