9911796707
TMI Blog2022 (4) TMI 1392X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessment and issue certain guidelines or on the other hand directed the assessing officer to submit a remand report. CIT(A) did not adopt either of these two courses but proceeded to determine the gross profit once again by way of guess work which in our opinion was incorrect in so far as the AO had completed the assessment. As pointed out earlier the tribunal has not given any independent reason for affirming the order of the CIT(A). Thus, taking note of the peculiar facts and circumstances of the case, we are of the considered view that the matter should be remanded back to the assessing officer to consider only the aspect as to whether the denial of the gross profit to the extent of 17.01 per cent by the CIT(A) as affirmed by the tri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... correctness of the accounts? II) Whether the decision of the Income Tax Authority in summarily reducing the percentage of gross profit of the assessee is perverse, contrary to and without authority of law? We have heard Mr. Mainak Bose, learned standing counsel appearing for the appellant/assessee and Mr. Amit Sharma, learned counsel appearing for the respondent/revenue. The short question involved in the instant case is whether the percentage of gross profit as determined by the Commissioner of Income Tax (Appeals) 11, Kolkata [CIT(A)] at 40 per cent was justified or not. The tribunal confirmed the order passed by the CIT(A) and has not given any independent finding. The assessee filed the return of income on 30th Septembe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ere is were no purchases or sales and that all that had been presented by the appellant was a mere hog wash to claim the exemption u/s 80IC of the Act. To this extent, the ld. AO s conclusions are found to be incorrect and are rejected . After having come to such a conclusion, the CIT(A) proceeded to examine as to whether the claim of gross profit made by the assessee at 57.01 per cent was justified or not. The CIT(A)took note of certain details as well as the gross profit of the sister concerns and held that the books of accounts submitted by the assessee were revealed the true and correct picture of the profit earned by the assessee. Accordingly, the books were rejected under Section 143(3) of the Act. Thereafter, in paragraph 31.1 o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... whether the books could have been rejected under Section 145(3) of the Act. This inconsistency also has led to a decision by the CIT(A) which is also based on certain presumptions or the opinion of the CIT(A). It appears that the assessee was not put on specific notice that the gross profit should have been determined at 40 per cent qua their claim of gross profit at 57.01 per cent. Thus, the best course that should have been adopted by the CIT(A) was to remand the matter back to the assessing officer to re-do the assessment and issue certain guidelines or on the other hand directed the assessing officer to submit a remand report. The CIT(A) did not adopt either of these two courses but proceeded to determine the gross profit once again by ..... X X X X Extracts X X X X X X X X Extracts X X X X
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