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TMI Blog2019 (7) TMI 1274X X X X Extracts X X X X X X X X Extracts X X X X ..... rs of the authorities below on this issue and remit the issue of allowability of deduction u/s 54F to the A.O. The A.O. would decide the issue after considering the evidences placed on record in accordance with law. This ground of the assessee s appeal is allowed for statistical purposes. Addition made towards enhancement of business income - HELD THAT:- The law is well settled where the A.O. makes best judgement by estimating the profit. He is required to make independent enquiries, if he is not satisfied with the profit declared by the assessee from the similarly situated assessee. In the present case, the sales as declared by the assessee were of ₹ 7,29,700/- A.O. has made addition purely on the basis that gross receipts ar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rutiny assessment and the assessment u/s 143(3) of the Income Tax Act, 1961 (hereinafter called as the Act ) was framed vide order dated 6.2.2014. While framing the assessment, the A.O. observed that assessee had sold 3 pieces of agricultural lands for ₹ 1.20 crores and computed long term capital gain as at Rs. Nil by claiming that he purchased 3 pieces of agricultural lands for ₹ 33,93,445/- and invested ₹ 86,90,000/- in construction of new residential property within 3 subsequent years and claimed deduction u/s 54F of the Act. The assessing officer rejected the claim of deduction u/s 54F of the Act. The A.O. further made addition in respect of estimation of profit from manufacturing of bricks of ₹ 1,60,000/-. Aggr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r construction of house in name of his wife was not eligible u/s 54F. The denial of exemption u/s 54F by Ld. A.O. was further appealed to Ld. CIT(A). This order was confirmed by Ld. CIT(A). However, without discussing the basis on which the Ld. A.O. made disallowance, the Ld. CIT(A), took his own reasons for disallowance. The assessee was not given any opportunity to submit the documentary evidences for the new findings given by Ld. CIT(A) for disallowing the claim. The same have been received now, which is enclosed as under: a) Electricity Bills PB 29 b) Property tax receipts PB 30 31 c) Inaugural Photographs of House PB 39 41 d) Affidavi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e the orders of the authorities below on this issue and remit the issue of allowability of deduction u/s 54F of the Act to the A.O. The A.O. would decide the issue after considering the evidences placed on record in accordance with law. This ground of the assessee s appeal is allowed for statistical purposes. 7. Ground No.2 is in respect of addition made by the A.O. towards enhancement of business income. Ld. Counsel for the assessee reiterated the submissions as made in the synopsis. The assessee has been engaged in the business of manufacturing of bricks and declared profit at ₹ 1,39,990/-. The A.O. however estimated the same to ₹ 3 lakhs and added the difference of ₹ 1,60,010/- to the income of the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct that no P L account has been produced and no basis has been given by the appellant for estimation of gross receipts and the profit thereon the estimation made by the AO is upheld which is based on the figures given in the Income Tax Return by the appellant as stated in the assessment order. In view of the above this ground of the appellant is also dismissed. 10. Ld. CIT(A) affirmed the view of the A.O. without making any independent enquiry. The law is well settled where the A.O. makes best judgement by estimating the profit. He is required to make independent enquiries, if he is not satisfied with the profit declared by the assessee from the similarly situated assessees. In the present case, the sales as declared by t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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