9911796707
TMI Blog2025 (1) TMI 444X X X X Extracts X X X X X X X X Extracts X X X X ..... However, the said order was not visible on the Income Tax Portal and accordingly the assessee filed an application before the Income Tax Department seeking a copy of the order passed by the learned CIT(A). Upon receipt of the order, it is submitted that the assessee filed the present appeal before the Tribunal. Therefore, it has been submitted that due to the aforesaid circumstances, the present appeal was delayed by 31 days. 3. We find that the reasons stated by the assessee for seeking condonation of delay falls within the parameters for grant of condonation laid down by the Hon'ble Supreme Court in the case of Collector Land Acquisition, Anantnag Vs. MST Katiji and others: 1987 SCR (2) 387. It is well established that rules of procedure are handmaid of justice. When substantial justice and technical considerations are pitted against each other, the cause of substantial justice deserves to be preferred. In the present case, the assessee did not stand to benefit from the late filing of the appeal. In view of the above and having perused the application, we are of the considered view that there exists sufficient cause for not filing the present appeal within the limitation period ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee filed its return of income on 07.11.2017 declaring a total income of Rs. 49,43,077/-. The return filed by the assessee was selected for complete scrutiny under CASS and statutory notices under section 143(2) and section 142(1) were issued and served on the assessee. During the assessment proceedings, upon perusal of the profit and loss account of the assessee, for the year under consideration, it was noticed that the percentage decreases in revenue and purchases are 59% and 53% respectively, whereas the other expenditure has gone up disproportionately. It was further noted that the employees' expenses which stood at Rs. 92 Lakh in the last year have increased to 1.28 crore this year. Further, the other expenses stood at Rs. 2.29 Lakh last year have increased to Rs. 3.84 crore this year. However, out of expenditure of Rs. 3.84 crore, the expenditure to the tune of Rs. 2.54 crore appears under the heads where Nil expenditure was incurred last year. It was observed that the purchases have halved during the year as compared to the last year. However, the assessee has increased expenditure on duties and taxes of Rs. 13.29 crore, surcharges of Rs. 3.46 crore, transport inwar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng the goods into India and clearance under their own name. This necessitated the need of taking storage tank, hence expenses related to storage charges to the tune of Rs. 3,46,64,128/-. The appellant had taken storage tanks at Karwar Port, Mundra Port, Kakinada Port and Haldia Port. 7.4 Similarly, the appellant also had to transport the Cargo from the vessel to the terminal required using transportation expenses, thus appellant also had to incur expenses on transportation of goods to the tune of Rs. 39,04,703/- during AY 2017- 18, which were not necessitated in the AY 2016-17. 7.5 Further, all the goods imported into India requires payment of Customs Duty, the goods imported needs to cleared from customs department also, thus the appellant had to pay the Customs duty & other relevant levies to the tune of Rs. 13,29,57,104/- to clear the goods from the customs department, whereas in AY 2016-17, the goods were sold on High Seas Basis otherwise, hence onus of payment of customs duty and other levies was with the ultimate customer, hence no expenses were incurred on payment of custom duties and other levies previously. 7.6 The appellant also had to appoint CHA Agents and Surveyo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ooks of account of the assessee appears to be unreasonable as the AO has not given satisfactory reasoning and detailed rationale for the same. Thus, upholding the conclusion of the AO in rejecting the books of account of the assessee for huge and unsubstantiated variation in the statistics, the learned CIT(A) concluded that the net profit of the assessee should be calculated at 3.30% instead of 5.59% as computed by the AO. Being aggrieved, both the assessee and the Revenue are in appeal before us. 10. During the hearing, the learned Authorized Representative ("learned AR") submitted that during the assessment proceedings, the AO issued notices under section 142(1) of the Act on 19.07.2019, 19.09.2019, 28.11.2019 and 07.12.2019, which were duly responded by the assessee and detailed as sought were furnished by the assessee vide its replies dated 29.07.2019, 15.11.2019, 22.11.2019, 04.12.2019 and 10.12.2019. The learned AR submitted that after the transition of the assessment proceedings to e-proceedings, the AO issued notice on 14.12.2019 and show cause notice on 23.12.2019 asking for further details and clarifications, however, the assessee could not respond to such notices as the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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