2015 (4) TMI 104

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..... ement with the findings of facts by the Tribunal and the decision of the CIT(Appeals) which is placed reliance on certain authoritative decisions of the Tribunals were misplaced and were misreading of the provisions of law as they were not applicable in the present case. In the facts and circumstances of this case, we hold that the Tribunal was right in coming to the conclusion that addition made by the Assessing Officer and confirmed by the Commissioner of Income-tax (Appeals)-II, Surat, on G.P. rate is not correct. - Decided in favour of the assessee - TAX APPEAL NO. 1459 of 2007 - - - Dated:- 11-12-2014 - MR. KS JHAVERI AND MR. K.J.THAKER, JJ. FOR THE APPELLANT : MR SUDHIR M MEHTA, ADVOCATE FOR THE OPPONENT : MR RK PATEL, .....

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..... r passed by the ITAT, the Revenue has preferred the present Tax Appeal before this Court. 5. Heard the learned advocates appearing for the parties and considered the submissions. Learned advocate Mr. Mehta has submitted that the AO after hearing the representative of the assessee, by order dated 20th March, 2006 determined total income of the assessee at ₹ 18,19,463/- and has made addition of ₹ 17,09,000/- on account of fall in gross profit than the previous year. However, while going through the record,it appears that the AO and the CIT(Appeals) have not properly analysed the facts. The analysis put forward by the Tribunal in para 14, 15 and 16, read as under: 14. As we have already stated that while exercising powers u/ .....

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..... he books of account were available. Such an abnormal higher rate for arriving at the taxable income cannot under any circumstances, be said to be in consonance with the intent and purpose of provisions of section 144 of the Act. 16. In view of above facts and circumstances of the present case and aforesaid discussion as well as in view of the provisions of law discussed herein before, we are of the opinion that since the Assessing Officer s duty, while proceeding u/s. 144 read with section 145 of the Act, is to make an assessment, i.e. to determine the taxable income; to the best of his judgment the only justifiable re-course was to proceed with the angle of net profit rate because, as we have already depicted in the earlier part of this .....

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