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TMI Blog2024 (9) TMI 857X X X X Extracts X X X X X X X X Extracts X X X X ..... f appeal have been raised by the appellant: 1. "On the facts and circumstances of the case as well as in law, the Learned CTT (A) has erred in passing the ex-parte order without granting sufficient opportunity of being heard to the appellant. 2. On the facts and circumstances of the case as well as in law, the Learned CIT (A) has erred in confirming the action of the Learned Assessing Officer in rejecting the book results/books of accounts of the Appellant u/s. 145 of the Income Tax Act, 1961 without giving any valid reasons in the assessment order for A.Y 2017-18 and without following the provision of law. 3. On the facts and circumstances of the case as well as in law, the Learned CIT(A) has erred in confirming the action of the Lea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t and gains from business or profession. The return was processed u/s 143 (1) and the case was selected for Limited Scrutiny under CASS. Notice u/s 143 (2) and 142 (1) of the Act were issued from time to time asking for more details but the assessee did not provide the same despite having several notices issued as under:- Sr. No. Nature of Notice Date of issue Compliance on or before Mode of Service Remarks 1. u/s. 143(2) 09.08.2018 23.08.2019 Email and through Post Email and through Post Non compliance 2. u/s. 142(1)(i) 02.09.2018 12.09.2019 Email and through Post Non compliance 3. u/s. 142(1)(i) 11.10.2019 17.10.2019 Email and through Post Non compliance 4. u/s. 142(1)(i) 10.11.2019 15.11.2019 Email and throug ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... etc. Without which the contract works cannot be executed. ix. The JV has not borne any risk and responsibilities of the contract and has passed on the entire risk and responsibilities with respect to execution of the said sub-contract works to the sub-contractor, its members. 6. It was, further, submitted that since the JV has not actually executed any sub-contract work, no profit beyond 1% of the Turnover could be attributed to the JV and therefore, no profit beyond 1% can be estimated in the hands of the JV from the sub- contract business as the JV did not carry any risks and responsibilities of the sub- contracted work execution. Hence, the question of attributing any proportion of Gross contractual Receipts for the risk and responsib ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te that JV has not earned the profit or has earned very little profit because it has neither executed the work nor deployed any resources in execution of the work. This proposition is not acceptable. In view of the forgoing facts and observations, the AO held that the Co-venturers have, for their own purposes and benefits, not declared the income / profits in the hands of the assessee JV, which is separate taxable entity as far as Income Tax Act 1961 is concerned, and have deliberately and intentionally included such income / profits in their books in order that the exact profits are not distinguishable easily in the complexities involved in their own books, given the wide range of their activities and operations. Further, keeping in mind ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n'ble CIT(A) being aggrieved by the Assessment order passed u/s. 143(3) of the Income Tax Act, 1961 on 24.12.2018 for the A.Y. 2016-17, where in the Learned Assessing Officer has made an addition of Rs. 4,61,36,110/ on account of alleged unaccounted income/suppressed sales being the difference between receipts as per AIR(26AS) and Profit and loss account. 2) Being aggrieved by the said assessment order u/s 143(3) of the Income Tax Act, 1961 the appellant preferred an appeal before the Hon'ble CIT(A). This assignment was given to the Mr. Sunil Bahadur. He did not attend the notices sent by the Hon'ble CIT(A) and also did not informed the management about the said appeal. Consequently, the Hon'ble CIT(A) passed ex parte orde ..... X X X X Extracts X X X X X X X X Extracts X X X X
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