9911796707
TMI Blog2022 (11) TMI 1347X X X X Extracts X X X X X X X X Extracts X X X X ..... was nobody available to produce the record/details before the Assessing Office - HELD THAT:- As considering assessee submission that since the Directors are now free and the books of account are available with the assessee therefore, given an opportunity, the assessee is in a position to substantiate his case, we deem it proper to restore the issue to the file of the Assessing Officer with a direction to adjudicate the issue afresh after giving due opportunity of being heard to the assessee and decide the issue as per fact and law. We hold and direct accordingly. The grounds raised by the assessee and the Revenue are accordingly allowed for statistical purposes. X X X X Extracts X X X X X X X X Extracts X X X X ..... by estimating the business income @ 15% of the gross receipts, insurance commission at Rs. 10,32,041/- and interest income at Rs. 4,93,03,513/-. Apart from the above, the Assessing Officer also made addition of Rs. 2,45,00,000/-u/s 68 of the Act. 3. In appeal, the learned CIT (A) directed the Assessing Officer to estimate the income @ 5% of the gross receipts and sustained the addition of Rs. 2,45,00,000/- made by the Assessing Officer u/s 68. So far as the interest income of Rs. 4,93,03,513/- is concerned, the learned CIT (A) after obtaining a remand report from the Assessing Officer directed the Assessing Officer to treat the interest income as income from business and estimate such income on par with the income from business. So far as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lding the AO order. 4. The learned CIT (Appeals) was unjustified in confirming the addition made U/s 68 in the hands of the receiving company irrespective of the fact that even though the identity of the investor is proved during the course of remand proceedings. This act against the law and violation of natural justice. 5. Whether on the facts and in the circumstance of the case and in law, the CIT(Appeals) was unjustified in holding that assessment under section 153A could be made even when no incriminating material found in the search. 6. On the facts and circumstances of the case the CIT(Appeals) has ignored the fact that Section 143(3) was completed and all aspects were covered in the original assessment. 7. On the facts an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cted u/s 132? 3. Whether on the facts and circumstances of the case, and in law, the Ld. CIT(A) erred in directing to assess the business income @5% instead of @15% adopted by the AO without appreciating that the assessee failed to produce books of account and it is an admitted fact that the assessee has not furnished any documentary evidence in support of the claim of expenditure under different heads? 4. Whether on the facts and circumstances of the case, and in law, the Ld. CIT(A) failed to appreciate the Apex Court's decision in Commissioner of Income Tax versus M/s. McMillan and Co., AIR 1958 Supreme Court 207, wherein the Hon'ble Supreme Court has laid down that if true income or profit cannot be ascertained on the basis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d any other grounds which may be necessary." 7. The learned Counsel for the assessee at the outset submitted that the original assessment was made u/s 143(3) of the Act on 22.2.2011. During the course of search no incriminating material, whatsoever, was found. At the time of assessment proceedings, the assessee could not produce the books of account since the Directors were in custody and due to non-availability of concerned persons, nothing could be produced before the Assessing Officer. He submitted that since the profit was estimated at a certain percentage during the original assessment proceedings and no incriminating material was found during the course of search and since the assessment was completed u/s 144/153A, therefore, given ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... addition of Rs. 2,45,00,000/- directed the Assessing Officer to adopt profit rate @ 5% of gross receipts in line with the order of the Assessing Officer in the original assessment proceedings passed u/s 143(3) on 22.02.2011 wherein the Assessing Officer had adopted the profit rate of 5% for estimation of income of the assessee company. Similarly, he directed the Assessing Officer to consider the interest income as part of business receipts and estimate the profit @ 5%. So far as the insurance commission is concerned, he noted that the Assessing Officer in the original assessment had estimated such insurance commission at 50% of the total receipts, therefore, he directed the Assessing Officer to restrict the addition at 50% of such receipt ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
