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TMI Blog2014 (4) TMI 959X X X X Extracts X X X X X X X X Extracts X X X X ..... facts and in the circumstances of the case, the ld. CIT(A) has erred in leaving the matter midway and erred in not assessing the appellant on basis of unimpeached audited book results and estimating income in adhoc fashion not supported by principles of law. (SC 5 ITR 170; 76 ITR 690; 336 ITR 400) 2. That on the facts and in the circumstances of the case and in law, learned CIT-A erred in upholding the best judgment addition by. Ld AO of Rs 10,00,000 to assessee's income which is not supported by cogent material much less comparable cases, from which depreciation needs to be separately considered and allowed etc. 3. That on the facts and in the circumstances of the case and in law, learned CIT-A erred in upholding the individual disa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d by the assessee. 4. The aggrieved assessee preferred an appeal before the Commissioner of Income Tax(A) which was partly allowed but the Commissioner of Income Tax(A) upheld part disallowances made out of donation, loss on sale of car, interest on TDS, claim of excise duty, tours and traveling expenses, purchase charges, salary expenses and ad hoc trading addition of Rs. 10 lakh was also upheld. Now, the aggrieved assessee is again before this Tribunal in the second appeal. Ground no. 1 to 3 5. Apropos these grounds, we have heard rival arguments of both the parties and carefully perused the entire record including decisions of Hon'ble High Court and Coordinate Benches of the Tribunal as relied by both the parties. Ld. counsel of the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... epreciation and after considering the explanation of the assessee, the observations and findings of the Assessing Officer were rightly upheld by the Commissioner of Income Tax(A). Ld. DR supported the orders of the authorities below and submitted that the appeal of the assessee is devoid of merits. 7. On careful consideration of above submissions of both the parties, we observe that the Assessing Officer has made certain disallowances on various counts and in addition to that, the Assessing Officer has also made lump sum ad hoc trading addition of Rs. 10 lakh. The ld. counsel of the assessee during the argument submitted a copy of Schedule XI of final accounts of the assessee as on 31.3.2006 and submitted that the assessee submitted securi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee is allowable and no disallowance can be made in this regard. 8. We also observe that when the Assessing Officer has made a lump sum trading addition by estimating ad hoc income of assessee at Rs.10 lakh after rejection of books of accounts u/s 145(3) of the Act, then it is not open to the Assessing Officer to uphold other disallowances and addition on other counts and on the basis of results of rejected books of accounts. Accordingly, except lump sum ad hoc trading addition of Rs. 10 lakh, other disallowances and addition made thereunder are not sustainable and we set aside the findings of the authorities below and Assessing Officer is directed to delete this addition. 9. Coming to the issue of lump sum ad hoc trading addition of R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... esent case, the Assessing Officer has not made any exercise to consider previous or subsequent results of the assessee or any other suitable comparables. Accordingly, estimation of impugned lump sum trading addition was not based on cogent and justified basis. Therefore, we are inclined to set aside the order of Assessing Officer pertaining to estimated trading addition and this issue is restored to the file of Assessing Officer with a direction that the estimated trading addition shall be made after considering previous and subsequent year book results of the assessee or in the light of suitable comparable. Needless to say that the Assessing Officer shall provide suitable opportunity of hearing for the assessee during this proceeding and a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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