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TMI Blog2023 (5) TMI 1112X X X X Extracts X X X X X X X X Extracts X X X X ..... s of profit earned by it in the earlier years i.e. FY 2008-09 to 2010-11, wherein, profit was @2.27%, 3.85% and 3.26% respectively, which was subject to verification by the AO. Moreover, the ld CIT(A) proceeded to estimate the percentage of profit after rejecting the books of account of the assessee. CIT(A) has taken a plausible view in the interest of justice and fair play. Decided against revenue. - ITA No. 69/M/2023 - - - Dated:- 25-5-2023 - Kuldip Singh, Judicial Member And Shri Shri Gagan Goyal, Accountant Member For the Assessee : None For the Revenue : Shri Nihar Ranjan Samal, Sr DR ORDER PER : KULDIP SINGH, JUDICIAL MEMBER: The appellant, The Assistant Commissioner of Income Tax (hereinafter referred ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er a/c name and address of the parties with whom the transactions were made, whether TDS has been deducted or not, copies of bills and vouchers, and no bank statement was produced reflecting that the expenses were incurred by the assessee. 2. Briefly stated facts necessary for consideration and adjudication of the issues at hand are: the assessee filed return of income declaring total income of Rs. 3,79,060/- for the year under consideration was initially processed u/s 143(1) of the Income Tax Act, 1961 (for short the Act ). Thereafter, on receipt of information from Dy. Director of Income Tax (Investigation) that in an open enquiry carried out in case of the assessee. Summons u/s 131 of the Act was issued to the assessee by DDIT to f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6. We have perused the order passed by the ld CIT(A) who has decided the issue as to making addition of Rs. 3,71,87,629/- on account of disallowance of expenses (operational cost and administrative expenses) for want of complete documents submitted by the assessee by thrashing the facts in details by returning following findings:- 5.1.3 All the facts and circumstances related to the impugned addition of Rs. 3,71,87,629 are duly considered. There is also no place for suspicion or guesswork for making any disallowance under the Act. The disallowances can be effected when it is proved that the expenditure is not for the purpose of business. Accordingly, it is to be held that ad-hoc disallowances made by the Ld. A.O. are not in accorda ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... diture (1,58,60,854) (53,69,583) (73,42,960) (3,76,39,618) Net Profit 3,67,921 2,15,111 2,47,954 56,406 Net Profit Ratio (Net Profit/ Total income*100) 2.27% 3.85% 3.26% 0.15% 5.1.5 In the facts and circumstance of the case and seeing that for 3 A.YS I.e. 2010- 11, 11-12 12-13 the cases were reopened on the similar basis and also keeping in view the fact that the appellant company could not file any documentary documents in relation to expenses claimed as Operational Cost and other Administrative Ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ich was subsequently merged with Azura Projects Pvt. Ltd by NCLT order dated 13.04.2017, despite numerous opportunities the assessee company could not produce the complete evidence so the ld CIT(A) proceeded to assess the profit of the company qua the receipt in question @3% on the basis of profit earned by it in the earlier years i.e. FY 2008-09 to 2010-11, wherein, profit was @2.27%, 3.85% and 3.26% respectively, which was subject to verification by the AO. Moreover, the ld CIT(A) proceeded to estimate the percentage of profit after rejecting the books of account of the assessee. 8. We are of the considered view that in the given circumstances the ld CIT(A) has taken a plausible view in the interest of justice and fair play. 9. Resu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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