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TMI Blog2015 (6) TMI 929X X X X Extracts X X X X X X X X Extracts X X X X ..... ppeal against the addition made by the A.O. in the reassessment proceedings, by applying G.P rate of 14.97% on the suppressed receipts of Rs. 1,00,40,147/-, ignoring the fact that the difference in receipts was noticed as per the copies of accounts submitted by the assessee itself with the Trade Tax Department for the same A. Y in question. 2. Whether in the facts and circumstances of the case, the ld. CIT (Appeals) has erred in law in deleting the addition of Rs. 16,45,362/- without giving any explicit findings while accepting the assessee's version and in reaching the conclusion over the issue of addition of Rs. 16,45,362/- which was made by the A.O. after giving proper and sufficient opportunities of being heard over the issue & the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... G.P. rate of 14.97% on such sales. The A.O. also made addition to the tune of Rs. 1,42,352/- on account of provisions of Section 40A(2b). During appellate proceedings, the Ld. CIT(A) after going through the complete facts and circumstances of the case, allowed relief to the assessee by holding as under: "2.2 The relevant facts are that the original assessment for the year under consideration had been completed under scrutiny under section 143(3) vide order dated 26.12.2008. The addition made in this assessment order was subsequently deleted at the first appellate stage. On the issue of notice under section 148 and in compliance thereof, the assessee filed return of income "under protest" showing the total income as determined after giving ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng to the reassessment proceedings were discussed in detail. As regards suppression of sales, it was stated that the turnover reflected in the audited trading and order is passed by the trade tax authorities had been filed along with the written submissions dated 31.10.2008 while justifying the acceptability of the declared trading results and the accounts. It was also pointed out that in the original assessment order, the AO had made a categorical statement that the manufacturing and trading account had been accepted that sales tax and excise duty are charged separately in every sales invoice. The sales under each invoice are credited to sales account, the sales tax to sales tax account and the excise duty to their respective separate acco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to pass an assessment order making aggregate addition of Rs. 16,45,362/-. Even adopted the income assessee earlier at Rs. 9,09,247 without considering that a relief had been granted by the CIT (Appeal) and the correct figure ought to have been Rs. 8,40,511/-." 2.3 It is noted that in the assessment order, the AO has acknowledged the receipt of reply dated 26.11.2010. Thereafter, the A.O. observes that there was a clear cut suppression of sales by Rs. 1,00,40,147/-. Obviously, the A.O. did not deem it appropriate to discuss the explanation given on behalf of the assessee and why such explanation was not acceptable to him. The AO has proceeded to pronounce his decision in utter disregard decision of the Honorable Supreme Court in the case of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iven in the letter dated 26.11.2010 did not merit mention in the assessment order. The logical corollary of such conduct is that the AO had no grounds to rebut the explanation given by the assessee and proceeded with the reassessment proceedings (without specifying as to why he had reasons to believe that income had escaped assessment) and to make the addition without any application of mind and in a mechanical manner. The shoddy manner in which assessment has been framed is further evident from the fact that there is no reference to the disallowance made in the original order and the relief granted by CIT (A), Meerut and also that the total income from which the AO has proceeded in the computation of income in the assessment order does not ..... X X X X Extracts X X X X X X X X Extracts X X X X
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