2007 (10) TMI 372

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....ed before it? 2. Whether the Appellate Tribunal is right in laws in confirming the addition to gross profit without considering the contention that the appellant had furnished its return of income for the year based on the books of account duly audited under section 44AB of the Act and no defects or omissions were found in the books of account in the course of the assessment proceedings by the Assessing Officer?" 2. The assessee is a partnership firm carrying on the business as wholesale dealer in cement. In respect of the assessment year 2002-03, the assessee filed its return admitting a total income of Rs.8,62,790. A survey under section 133A of the Act was conducted in the business premises of the assessee on March 18, 2002, just 13 da....

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....survey was nowhere near the profit shown to the Department. Considering the same, the assessing authority went in for comparable cases, where the gross profit rate was admitted to be around at 4 per cent. to 6 per cent. and proceeded to estimate the gross profit of the assessee at 4 per cent. as against the gross profit disclosed by the assessee at 2.77 per cent. 3. Aggrieved by the same, the assessee filed an appeal before the appellate authority, the Commissioner of Income-tax (Appeals), who went into the question of estimation as weli as on the maintenance of accounts. The appellate authority found that there was no legal infirmity in the assessment proceedings and that the Assessing Officer was justified in rejecting the book results a....

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....f hearing regarding rejection of books of account. He submitted that the Tribunal has not considered the various grounds raised in the appeal in the judicial manner. Learned counsel appearing for the appellant placed reliance on the decision in South India Surgical Co. P. Ltd. v. Asst. CIT [2003] 263 ITR 5 (Mad), wherein this court remanded the matter to the Appellate Tribunal for fresh consideration of the specific issue alone and sought for similar reliefs. 6. We have gone through the judgment of this court, wherein one of the contentions raised by the assessee was that the Tribunal had not dealt with the specific issue raised in the appeal. This court after going into the grounds taken in the appeal came to the conclusion that the matte....