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TMI Blog2025 (1) TMI 761X X X X Extracts X X X X X X X X Extracts X X X X ..... as at one hand he stated sale/purchase claimed to have been made as bogus then he proceeds to make addition on the basis of GP disclosed by the assessee without any justification and explanation. Such order, on merit as well, fails to meet the test of law and deserves to be quashed. The grounds raised by the assessee are allowed. Appeal of the assessee is allowed. - Shri Shamim Yahya, Accountant Member, And Shri Sudhir Pareek, Judicial Member For the Appellant : Shri Ved Jain, Adv. Shri Aman Garg, Adv. For the Respondent : Ms. Jaya Chaudhary, CIT(DR) ORDER PER SHAMIM YAHYA, AM : These are five appeals filed by the assessee against the common order dated 27.02.2023 passed by the ld. CIT(A-3), Gurgaon relating to assessment years 2008-09 to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd as such the same is bad in the eye of law and liable to be quashed. 4. On the facts and circumstances of the case, the learned CIT (A) has erred, both on facts and in law, in rejecting the contention of the assessee that additions in order passed u/s 153A r.w.s. 143(3) of the Act has been made, without there being any incriminating material having been found during the course of search. 5. On the facts and circumstances of the case, learned CIT (A) has erred, both on facts and in law, in confirming the action of the AO despite the fact that the proceedings initiated under section 153A against the appellant and the assessment framed under section 153A r.w.s 143(3) are in violation of mandatory provisions of Section 153D of the Act and as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ity of cross examination to the assessee to rebut the same. 9. On the facts and circumstances of the case, the learned CIT(A) has erred both on facts and in law in rejecting the contention of the assessee that assessment order has been passed by AO on the basis of surmises and conjectures, without there being any adverse material on record. 10. That the appellant craves leave to add, amend or alter any of the grounds of appeal. 3. We have heard both the parties and perused the records. Ld. Counsel for the assessee submitted that AO has made the additions of gross profit over and above the gross profit declared by the assessee without detecting even a single defect in the books of accounts. The AO has made the additions in respective assessm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the same u/s 145(3) of the Act and made addition of Rs. 12,86,416/- by applying the GP rate of 0.24% (declared in its books of accounts) on the total turnover accounted by it in its books of accounts. Learned counsel submitted that the AO has made addition of Gross Profit which has already been considered by the assessee for computing its tax liability. He submitted that the AO by adding gross profit again to the income of the assessee has made double taxation which is unsustainable and unjust in the eyes of law. He submitted that the AO has made the addition by relying on the statements recorded on the back of the assessee without providing an opportunity of cross-examine the same. Relying upon the decision of Hon ble Supreme Court in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Company amounting to Rs. 54,14,14,119/- as bogus then he proceeds to make addition on the basis of GP disclosed by the assessee without any justification and explanation. Such order, on merit as well, fails to meet the test of law and deserves to be quashed. The grounds raised by the assessee are allowed. Appeal of the assessee is allowed. 5.1 We further note that, following the ratio of the aforesaid decision, the Coordinate Bench vide its order dated 10.12.2014 passed in ITA 1219/Del/2023, 1220/Del/2023, 1221/Del/2023 and 3401/Del/2023 in the matter of Kamal Sharma pertaining to assessment years 2010-11 to 2013-14 has held as under:- 6. Considering the fact that the Co-ordinate Bench of the Tribunal deleted the similar addition on the sam ..... X X X X Extracts X X X X X X X X Extracts X X X X
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