9911796707
TMI Blog2017 (9) TMI 372X X X X Extracts X X X X X X X X Extracts X X X X ..... for the sake of convenience and brevity. 2. At the time of hearing, the Ld. Representative for the assessee explained that the assessment for the impugned assessment years of 1999-2000 and 2000-01 have been completed by the Assessing Officer after being set-aside by the Tribunal earlier vide order in ITA Nos.3885&3921/Mum/2008 dated 20th August, 2010. 3. The Ld. Representative for the assessee pointed out that assessee was engaged in the business of export of garments and the entire addition is because of an information received from DRI Mumbai and Enforcement Directorate Mumbai that assessee was one of the concerns indulging in fraudulent import export activities. At the stage of assessment the charge made by the DRI and Enforcement Dire ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... IT(A) scaled down the estimate of business income by estimating it @10% of declared sales. For this purpose, the CIT(A) referred to the financial results of one, M/s. Gokaldas Export Ltd., a comparable case as per the CIT(A). The CIT(A), thus, determined the income in assessment years 1999-2000 and 2000-01 as under:- Assessment Year : 1999-2000: (i) Net profit at 10% of Rs. 1,02,38,400/- Rs. 10,23,840/- (ii) Duty draw back Rs. 15,35,760/- Total Income Rs.25,59,600/- Assessment Year : 2000-2001: (i) Net profit at 10% of Rs. 10,62,,71,242/- - Rs. 1,06,27,124/- (ii) Profit from trading in Bearing (Rs.3,13,36,612 - Rs. 1,45,55,10) - Rs. 1,67,81,602/- (iii) Duty Draw back - Rs. 1,69,22,691/- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iminary plea of the assessee for remanding the matter back to the file of Assessing Officer for redetermination of the profits from business. As the factsituation reveals, in the instant case, the assessment made by the Assessing Officer proceeded on the foundation that assessee was indulging in overinvoicing of exports with a view to unjustly earning duty drawbacks, etc. The aforesaid premise of the Assessing Officer was based on the proceedings initiated by the DRI and the Enforcement Directorate. The impugned order of assessment also reveals that there was no return of income filed by the assessee and that the Assessing Officer collected the details from the office of DRI in order to ascertain the sales made, etc. On such basis, the Asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... carried out by the assessee. Therefore, under these circumstances, in our considered opinion, the manner of estimation made by the CIT(A) cannot be sustained. It is also observed that before the CIT(A) assessee furnished an unaudited P&L Account, which formed the basis for the CIT(A) to apply the profit percentage on the declared sales. In our view, before taking into account such unaudited P&L Account, it was imperative to examine its authenticity and in that respect we do not find any particular finding by the CIT(A). Pertinently, this unaudited P&L Account was not before the Assessing Officer in the course of the assessment proceedings. Thus, considering the entirety of facts and circumstances of the case, we deem it fit and proper to s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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