9911796707
TMI Blog2021 (4) TMI 448X X X X Extracts X X X X X X X X Extracts X X X X ..... wing grounds: 1. The order of the learned CIT(A) is opposed to law and facts of the case. 2. The CIT(A) has erred in estimating the profit @ 4% on the unrecorded sales without any basis when the assessee had relied on Section 44AD. 3. The CIT(A) erred in not considering the provisions of Section 23 to assess the vacant property which was held during the Financial Year. 4. The CIT(A) erred in considering the intimation u/s. 143(1) as an assessment order. 5. The CIT(A) erred in deleting the addition on account of unexplained cash credits after recording the finding that no evidences were produced by the appellant. 6. The CIT(A) erred in applying the decision in the case of CIT Vs. Balbir Singh Maini though the Joint Development Ag ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ings of CIT(A) are in favour of the assessee and the same have attained finality because no appeal is filed by the revenue against these findings of CIT(A). But in spite of this finding in para 6 of his order, the learned CIT(A) has held in para 7 of his order that the appeal of the assessee for A.Y. 2012-13 is partly allowed. In our considered opinion, after holding this in para 6 that the case of assessee squarely falls outside the purview of section 153A, learned CIT(A) should have held that the assessment order passed by the AO u/s. 153A is bad, in law and he should have allowed the appeal of the assessee instead of holding that the appeal is partly allowed. Therefore, we hold that the assessment order passed by the AO u/s. 153A is bad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The CIT(A) erred in not upholding the addition on account of investment in unaccounted purchases. 6. The CIT(A) erred in not upholding the addition on account of receivables. 7. The CIT(A) has failed to appreciate the fact that in the absence of regular books of accounts the sales, purchases, receivables and creditors cannot be interlinked as there are no corroborative evidences to substantiate the co-relation of transactions. 8. For these and other grounds that may be urged upon the order of CIT(A) may be reversed and that assessment order to be restored. 6. The grounds are interrelated. The facts of the case are that the assessee is an individual and is carrying on the business of trading in areca nut under in the name and style &# ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... elied on by the AR regarding loose sheet, dairy unearthed during search/survey, the ratio laid down in the said cases are not applicable on the basis of facts and circumstances of the appellant's case. However, I fully agree with the fact that, sales and purchases should be net off and further also give effect to other direct and indirect expenses. Turnover includes purchase cost, labour cost and gross profit. Only gross profit can be termed as income of the appellant. The action of the Assessing Officer in adding entire turnover is useless Therefore, the profit to be computed as follows. Particulars Gross Amount Rs. Additions made by the AO Rs. Additions ought to have been @ 4% Rs. A Unrecorded sales 4,68,74,106 56,24,892 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... S in the cell phones of the employees of at Nagpur wherein contents were mentioned in coded words and numbers. As per para 5.2.9 of his order in this year, although learned CIT(A) has noted that in the business of Arecanut, the books of accounts disclose profit @ 2-3% but while computing income of unaccounted turnover taxes and levies etc. are evaded and therefore the profit will be higher and he directed the AO to assess income @ 4% of undisclosed turnover as against 12 % rate adopted by the AO. In the written submissions dated 11.06.2020 filed by the learned AR of the assessee for A.Y. 2015-16, this is one of the submissions that the coded words and figures found noted in impounded materials were disclosed in audited books of accounts and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... A.Y TURNOVER EXPESNES INCOME U/S.44AD U/S. 44AB PERCENTAGE OF NET PROFIT 1 12-13 13-14 19,40,500 17,41,300 1,99,200 YES - 10% 2 13-14 14-15 20,83,200 18,58,967 2,24,233 YES - 8% 3 14-15 15-16 73,64,270 70,55,370 3,08,900 - YES 4% 13. Accordingly, we direct the AO to consider the average net profit declared by the assessee in the last 3 immediate Assessment Years i.e., 2013-14, 2014-15, 2015-16 and apply the same rate and recompute the income of the assessee. 14. Now the other contention of the DR is that there should be separate addition with regard to undisclosed investment in unaccounted purchases against receivables. Since there was no corroborative evidence ..... X X X X Extracts X X X X X X X X Extracts X X X X
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