TMI Blog2023 (3) TMI 1189X X X X Extracts X X X X X X X X Extracts X X X X ..... eshi Commercial Co. Ltd. [ 2008 (12) TMI 823 - CALCUTTA HIGH COURT] held that gross profit cannot be estimated. In the instant case, AO has not pointed out or any discrepancy in the books of accounts filed by the assessee and the AO has no evidence to come to a conclusion that the assessee has undisclosed profit. The entire addition was made surmises and conjectures - assessee has explained the issue with facts and figures, under these facts and circumstances, the addition made by the assessing officer as sustained by the CIT(A) is bad in law. In view of the discussions made above, we delete the addition made by the ld. AO and set aside the order passed by the ld. CIT(A) by allowing the appeal filed by the assessee. - I.T.A. No. 733/K ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ea the appellant had to scale down profit. iv. For that the ld. CIT(A) erred in holding that the explanation of low profit submitted by the appellant was not satisfactory although he had no evidence to prove that the explanation was not proper and as such the entire addition is not in accordance with law and should be deleted from the point of equity and justice. v. For that the appellant craves leave to file additional ground/grounds of appeal at the time of hearing. 2. Though the Registry has pointed out that the appeal is time barred, however, in view of the decision of the Hon ble Supreme Court in the case of Miscellaneous Application No. 665 of 2021 in SMW(C) No. 3 of 2020, the period of filing appeal during the COVID ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 728/- of the three preceding previous years i.e. F.Y. 2013-14, 2014-15 2015-16 (3.32% of Rs. 5,86,66,518/-) Less: Book profit disclosed in the return of income for the A.Y. 2016- 17 Rs. 9,33,805/-. 4. Dissatisfied with the above order, assessee preferred an appeal before the ld. CIT(A) and the ld. CIT(A) dismissed the appeal of the assessee. 5. Aggrieved by the above order of ld. CIT(A), assessee has filed the instant appeal before the Tribunal. 6. The assessee has filed the instant appeal enumerating five grounds before the Tribunal for adjudication. However, the effective issue that is addition of Rs. 10,13,923/- on the reason that the comparative loss with profit of last years. The profit was lower and the ld. AO made ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as not pointed out or any discrepancy in the books of accounts filed by the assessee and the assessing officer has no evidence to come to a conclusion that the assessee has undisclosed profit. The entire addition was made surmises and conjectures. Even otherwise we find that the assessee has explained the issue with facts and figures, under these facts and circumstances, the addition made by the assessing officer as sustained by the ld. CIT(A) is bad in law. In view of the discussions made above, we delete the addition made by the ld. AO and set aside the order passed by the ld. CIT(A) by allowing the appeal filed by the assessee. 8. In the result, the appeal of the assessee is allowed. Order pronounced in the open court on15.03.2023. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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