2018 (8) TMI 1372

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..... sessment Year 2011-12. 2. The appeal was admitted on 27.02.2018. The following questions of law have been formulated for decision of this Court:- i)Whether, on the facts and circumstances of the case and in law the learned ITAT was justified in holding that after application of Section 144 of the IT Act the only way available to the Assessing Officer to assess income by applying N.P. Rate and not by making specific disallowances. ii) Whether, on the facts and circumstances of the case and in law the learned ITAT was justified in deleting addition of Rs. 8,92,02,109/- for bogus/unverifiable purchase and of Rs. 2,19,88,312/- for bogus/unverifiable expense claimed in M/s Sewa Enterprises and Surgical and M/s.Prabhat Enterprises and direct .....

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..... oduce books of account and supporting documents viz., purchase invoices, vouchers for expenses relating day to day purchase etc. 6. In view of the aforesaid, the Assessing Officer (hereinafter referred to as ''the AO') rejected the books of account and trading results shown by the assessee and proceeded to complete the assessment proceedings on the basis of material available on record and in the manner provided under Section 144 of the Act and assessed total income of the assessee for tax at Rs. 15,73,71,390/-. 7. Aggrieved by the aforesaid assessment order, the respondent-assessee filed an appeal before the CIT(A). The CIT(A), however, rejected the appeal and held that the AO had provided ample opportunities to the assessee .....

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..... ribunal had confirmed the order of CIT(A) estimating the net profit at the rate of 11.5% and, therefore, directed the AO to estimate the net profit of the assessee @ 11.5% on the total sales made by all the concerns of the assessee. 12. After setting aside the order passed by the CIT(A), the ITAT has restored the issue to the file of the AO with a direction that the AO should verify from the copy of the Bank account and the copy of total income whether the source of investment could be proved or not. Once the books of account had been rejected as it was not supported by the evidence, the only course available to the AO was to make the best judgment assessment under Section 144 of the Act. The AO was required to assess the income estimating .....

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