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of <h1>Tribunal Partly Allows Appeal: Deletes Gross Profit Addition Due to Lack of Discrepancies, Dismisses Hearing Opportunity Claim.</h1> <h3>M/s Amar Nath & Sons, Versus The ITO, Ward-2,</h3> The Tribunal partly allowed the appeal. It deleted the addition of Rs. 2,67,428/- on account of Gross Profit on wheat, as it found no specific ... - Issues:1. Addition of Gross Profit on wheat2. Opportunity of being heard before directions u/s 144AIssue 1: Addition of Gross Profit on wheatThe appeal was filed against the order of CIT(A) confirming an addition of Rs. 2,67,428/- on account of Gross Profit on wheat. The Assessing Officer applied the gross profit rate of the previous year without rejecting the books of account, resulting in the addition. CIT(A) rejected this formula and sustained the addition based on a different approach. The appellant argued that the Assessing Officer wrongly stated that quantitative details were not furnished, whereas they were included in the return of income and Trading Account. It was highlighted that the Assessing Officer did not reject the books of account regularly maintained by the assessee. The Tribunal observed that low profit alone is not sufficient grounds for addition, especially when no specific discrepancies were found in the books of account. Therefore, the Tribunal deleted the addition of Rs. 2,67,428/-.Issue 2: Opportunity of being heard before directions u/s 144AThe appellant contended that they were not provided an opportunity to be heard before directions were given u/s 144A, which were prejudicial to their interests. However, the Tribunal found no merit in this ground of appeal as it was observed that no specific directions were issued by the Addl. CIT to frame the assessment in a particular manner. Therefore, this ground of appeal was dismissed.In conclusion, the appeal was allowed partly, with the Tribunal deleting the addition of Gross Profit on wheat but dismissing the contention regarding the opportunity of being heard before directions u/s 144A.
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