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TMI Blog2018 (12) TMI 411X X X X Extracts X X X X X X X X Extracts X X X X ..... rt System Ltd.[2013 (10) TMI 258 - GUJARAT HIGH COURT] held that the Assessing Officer cannot make addition merely by comparing the expenditure with preceding year's expenditure, which precisely was done by the Assessing Officer in the instant case, while he passed the assessment order dated 20.12.2016. Thus, we are fully convinced that the addition made by the Assessing Officer was rightly deleted by the CIT (Appeals) and the Tribunal fell in error in interfering with the said order and by way of a guess work reducing to 2.5% without any material before it. Thus, for the above reasons, the order passed by the Tribunal calls for interference. Appeal filed by the assessee is allowed. - Tax Case Appeal No.743 of 2018 - - - Dated:- 15-11-2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bunal was justified in reversing the order passed by the Commissioner of Income Tax (Appeals) ('CITA' for brevity), who had deleted the addition made by the Assessing Officer being 5% of the turnover, as being without any basis. 5.The Assessing Officer, while completing the assessment under Section 143(3) of the Act, vide order dated 20.12.2016, made an observation that it is seen from the financials submitted by the assessee that the profit declared for the assessment year 2013-14 was 26.80% of the total turnover; whereas, the same was declared at 19.82% for the assessment year 2014-15, which according to the Assessing Officer, was by inflating the expenses. The Assessing Officer would state that an illustration was made by him ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7.When the assessee took the matter on appeal to the Commissioner of Income Tax (Appeals-11), Chennai, they contended that the arbitrary enhancement of turnover of 5% was without any basis and not sustainable and the Assessing Officer acted on a pure guess work and suspicion, which is not legally tenable. The assessee relied upon the decision of the Hon'ble Supreme Court in Dhakeswari Cotton Mills Limited vs. the Commissioner of Income Tax, West Bengal [1954 (10) TMI 12] ; the decision of the High Court of Gujarat in the case of Commissioner of Income Tax-IV vs. Symphony Comfort System Ltd., [(2013) 35 Taxman.com 533(Gujarat)] and the decision of the Allahabad High Court in the case of Commissioner of Income Tax-I vs. U.P.State Food ..... X X X X Extracts X X X X X X X X Extracts X X X X
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