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TMI Blog2020 (7) TMI 661X X X X Extracts X X X X X X X X Extracts X X X X ..... the file of the AO and direct him to examine the evidences filed by the assessee and examine the same and thereafter decide the issue afresh. Appeal filed by the assessee and Revenue are allowed for statistical purposes - ITA No.3103/Del/2016 And ITA No.3329/Del/2016 - - - Dated:- 27-7-2020 - Sh. Anil Chaturvedi, Accountant Member And Ms Suchitra Kamble, Judicial Member For the Assessee : Shri Salil Kapoor, Adv., Shri Sumir Chandani, Adv. For the Respondent : Shri Saras Kumar, Sr. D.R. ORDER PER ANIL CHATURVEDI, AM: These two appeals filed by the assessee and Revenue are directed against the order dated 28.03.2016 of the Commissioner of Income Tax (A)-20, [ CIT(A) ] New Delhi relating to Assessment Year 2012-13. 2. The relevant facts as culled from the material on records are as under: 3. Assessee is an individual who is stated to be engaged in the business of purchase of live stock and selling the same to slaughter houses. Assessee electronically filed his return of income for A.Y. 2012-13 on 26.09.2012 declaring total income at ₹ 8,04,680/-. The case was selected for scrutiny and thereafter assessment was framed u/s 143(3) vide order dat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 77; 47.93 lakh which worked out to 0.29% and Net Profit of ₹ 9.04 lakh (0.055%). Assessee was asked to file the details inter alia including the names and addresses of the persons from whom sale/ purchase were made, reasons for low Gross and Net Profit. AO noted that assessee did not produce proper books of accounts despite various opportunities granted by him but had only produced copies of some bought notes and cash payment s slips which did not contain the names or the addresses. AO was of the view that in view of these facts the transactions of the assessee could not be independently verified and the purchase, sales and profits shown by the assessee cannot be relied upon. He, therefore rejected the books of accounts u/s 145(3) of the Act and thereafter estimated the income of the Assessee at 2% of the sales which worked out to ₹ 3,30,45,676/- and considered it to be the income of the Assessee. Aggrieved by the order of AO, assessee carried the matter before the CIT(A) who after considering the submissions of the assessee, directed the estimation of income be made at 1% of the receipts as against the 2% of the receipts considered by AO and accordingly granted partial ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the lower authorities and the assessee could not produce the same. In such a situation the additional evidences filed by the assessee now needs to be rejected. 8. We have heard the rival submissions and perused the relevant materials on record. The issue in the present appeals is with respect to the estimation of the income. It is the case of the Revenue that in the absence of complete details filed by the assessee, AO had no other option but to invoke the provisions of s.145(3) and thereafter estimate the income of the assessee. Before us, assessee has prayed for filing of the additional evidences which are in the nature of gate passes/ weight slip/ bought notes/ purchase invoices/ copy of accounts which according to him goes to the root of the matter and which could not be filed before the lower authorities. Considering the totality of the facts, we are of the view that in the present case the Assessee could not lead the required evidence before the lower authorities. We are of the view that the evidences which the assessee has filed now have a material bearing on the issue which is before us. We further find that assessee had also filed additional evidences before the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... without taking into consideration the additional evidence sought to be adduced. The legitimate occasion, therefore, for exercise of discretion under this rule is not before the Appellate Court hears and examines the case before it, but arises when on examining the evidence as it stands, some inherent lacuna or defect becomes apparent to the Appellate Court coming in its way to pronounce judgment, the expression to enable it to pronounce judgment can be invoked. Reference is not to pronounce any judgment or judgment in a particular way, but is to pronounce its judgment satisfactory to the mind of Court delivering it. The provision does not apply where with existing evidence on record the Appellate Court can pronounce a satisfactory judgment. It is also apparent that the requirement of the Court to enable it to pronounce judgment cannot refer to pronouncement of judgment in one way or the other but is only to the extent whether satisfactory pronouncement of judgment on the basis of material on record is possible. In Arjan Singh vs. Kartar Singh AIR 1951 SC 193, while interpreting the provisions of Order 41 Rule 27, the court remarked as follows: - The legitimate occasion for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of the AO. The assessee directed to furnish all these evidences before the AO and the AO is directed to examine the same and decide the issues afresh, after affording reasonable and fair opportunity of being heard to the assessee. 9. Before us, Revenue has not pointed out any distinguishing feature in the facts of the case under the consideration and that of AY 2011-12. Considering the totality of the facts, we are of the view that the ends of justice demands the admission of the additional evidences. We accordingly admitted the same. Since the evidences which have been filed by the Assessee now before us requires verification and examination by the AO, we restore the entire issue back to the file of the AO and direct him to examine the evidences filed by the assessee and examine the same and thereafter decide the issue afresh. The AO is free to call for any other evidence required by him for deciding the issue afresh. The assessee is also directed to co-operate with AO by promptly filing the relevant details called by him. Needless to state, that the AO shall grant adequate opportunity of hearing to the assessee. 10. Since the issue raised in Revenue s appeal is inter co ..... X X X X Extracts X X X X X X X X Extracts X X X X
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