9911796707
TMI Blog2014 (6) TMI 36X X X X Extracts X X X X X X X X Extracts X X X X ..... ustainable - the authorities below adopted a wrong approach in deciding taxable income of the assessee and we find it just and proper that the entire issue pertaining to the assessment should be examined and adjudicated at the end of AO – thus, the matter is remitted back to the AO for fresh adjudication – Decided in favour of Revenue. Jurisdiction to pass order – Held that:- As the matter has already been remitted back to the AO, the legal objection of the assessee regarding jurisdiction is also restored to the AO for adjudication - Decided in favour of Assessee. - I.T.A.No.2860/Del/2013 with C.O. No. 167/Del/2013 - - - Dated:- 28-2-2014 - SHRI G.D. AGRAWAL AND SHRI CHANDRA MOHAN GARG, JJ. For the Appellant : Shri Satpal Singh, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ppellant were at Aurangabad and all administrative works were carried out at Delhi. A copy of this letter was also forwarded to the ITO, Ward 4(2), Mumbai. The Assessing Officer issued various notices to the assessee including a letter dated 23.09.2011 stating that the jurisdiction over the case of the appellant remains with the ITO, Ward 4(2) till order u/s 127 of the Act is passed and fixed the date of hearing for 05.10.2011. The assessee wrote another letter to Commissioner of Income Tax(A)-VI, New Delhi requesting him to transfer the jurisdiction of the case to Delhi and stated that in case the order u/s 127 is not passed within a period of 7 days, the assessee will seek redressal of its grievance in accordance with law. The assessee fi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion on the jurisdiction of the Assessing Officer. The Assessing Officer passed assessment order on 14.12.2011 by estimating 5% of the turnover as net profit. 6. Being aggrieved by the above assessment order, the assessee preferred an appeal before the Commissioner of Income Tax(A)-XV, New Delhi which was partly disallowed on the ground of jurisdiction and on the ground of violation of principles of natural justice but partly allowed on the ground of estimation of net profit. The Commissioner of Income Tax(A) observed that in absence of any specific adverse observation with regard to any claim of the expenses by the assessee, the book results of the assessee cannot be rejected and according to total income filed as per return of income by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... w, we clearly observe that the Assessing Officer estimated 5% of turnover as net profit of the assessee without any basis and without considering previous year s results of the assessee and also without taking any comparable. The Commissioner of Income Tax(A) accepted the explanation of the assessee regarding decline in the net profit during the current year compared to the immediately previous year. The Commissioner of Income Tax(A) also held that in absence of any specific adverse observations with regard to claim of expenses of the assessee, the book results of the assessee cannot be rejected and hence, the Commissioner of Income Tax(A) accepted the total income as per return of the assessee. 9. On above set of facts and circumstances ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of the assessee cannot be rejected, are perverse, wrong and unsustainable. In these peculiar facts and circumstances of the present case, we are of the considered opinion that the authorities below adopted a wrong approach in deciding taxable income of the assessee and we find it just and proper that the entire issue pertaining to the assessment should be examined and adjudicated at the end of Assessing Officer. Therefore, orders of the authorities below are set aside and the case is restored to the file of Assessing Officer with a direction that the Assessing Officer shall adjudicate the case afresh by providing due opportunity of hearing to the assessee and without being prejudiced with the observations and findings in earlier assessmen ..... X X X X Extracts X X X X X X X X Extracts X X X X
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