9911796707
TMI Blog2014 (10) TMI 265X X X X Extracts X X X X X X X X Extracts X X X X ..... Act and relying upon Yaggina Veeraraghavulu and Mavuleti Somaraju & Co. v. Commissioner of Income-tax [1980 (5) TMI 22 - DELHI High Court] - the estimation of income made by the AO without disclosing the materials relied on and also denying them an opportunity was not only in violation of the statutory provisions, but also in violation of the principles of natural justice - the proceedings will have to continue afresh from the stage of estimation of the income and the AO disclosing to the assessee the materials that are relied on by him and after affording the assessee an opportunity to rebut those materials – thus, the assessment order is set aside and the matter is remitted back to the AO for the limited purpose of estimating the income ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... confirmed. 3. The Revenue and the assessee filed appeals challenging the orders passed by the first appellate authority before the Tribunal. The Tribunal disposed of those appeals by Annexure C orders. The appeals filed by the Revenue were allowed and among the appeals filed by the assessee, Appeal No.136/2014 was disposed of ordering a limited remand. It is in these circumstances, the assessee has filed these appeals challenging the aforesaid orders passed by the Tribunal. 4. We heard the counsel for the appellant and also the learned Senior Standing Counsel appearing for the Revenue. 5. Among the various contentions raised by the appellant, the first one is that the Assessing Officer acted illegally in rejecting the books of acco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... during this year exceeds ₹ 9 crores. A total of ₹ 15,06,65,679/- is claimed as revenue expenditure without getting the accounts audited as per the provisions of Sec.44AB. The assessee has also not filed the balance sheet for the A.Y. 2009-10 till date. Similarly, an estimated amount of ₹ 2 crores is shown as excess of expenditure over income for the assessment year 2009-10. The assessee is also not eligible for setting off capital expenditure in view of the fact that the trust is not enjoying exemption either under section 11 or 10(23C) of the IT Act. Some of the credits introduced in the balance sheet of the trust also remain unexplained. For instance, the source for an amount of ₹ 1,61,800/- shown as the amount in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... raised by the learned counsel for the appellant was regarding the estimation of the income. From the submissions made by both sides, we notice that parties are in agreement that once the books of accounts are rejected by the Assessing Officer, the income of the assessee can be estimated either by taking recourse to the orders pertaining to the previous assessment years or by relying on cases which are comparable in nature. 8. Insofar as these cases are concerned, reading of the assessment orders reveal that the assessee's case has been compared with similar other assessees running hospitals in the same region. According to the Assessing Officer, the gross profit rate of such comparable well established hospital concerns was found to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee the materials that are relied on by him and after affording the assessee an opportunity to rebut those materials. 11. However, we notice from the assessment order for the year 2007-08 that 30 lakhs received by the assessee on 06.01.2007 has been added to the income of the assessee. This was contested by the assessee throughout by contending that the said amount was received in instalments towards fees and that the document evidencing receipt of this amount was retrieved from the computer on 06.01.2009. Therefore, according to the assessee, the said amount of 30 lakhs was added to the income for the assessment year 2007-08. This, according to them was illegal. However, not even a scrap of paper has been produced by the assessee bef ..... X X X X Extracts X X X X X X X X Extracts X X X X
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