2014 (1) TMI 1319

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.... not justified with passing of the order without giving a second chance to the appellant company of being heard since the assessee representative was unable to attend the first and hearing date due to unavoidable circumstances." 4. At the time of hearing, ground No.2 was not pressed by the learned counsel for the assessee. Accordingly, the same is rejected. 5. The remaining grounds of appeal read as under:- "3. The learned CIT(Appeal-I) was not justified in upholding the additions of Rs.57,38,780/- being 5% of total sales of Rs.11,47,75,609/- contrary to the additional of 5% of total overheads of Rs.1,25,96,367/- which works out to be Rs.6,29,818/-. 4. The learned CIT(Appeal-I) has further erred in up holding the additions of Rs....

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....ssing Officer completed the assessment rejecting the assessee's books of account and applying gross profit rate as well as making disallowance out of expenses as under:- "A. Total expenses claimed as per the P&L A/c- for the year ending 31.03.2002 is Rs.11,47,75,609 5% thereof Rs.57,38,780 B. GP worked out by the assessee is Rs.1,35,97,453 which is 11.85% of sales of Rs.11,47,06,54613.05% of Rs.11,47,06,546 is Rs.1,49,69,204 Difference to be disallowed (1,49,69,204 - 1,35,97,453) Rs.13,71,751 Total disallowance (addition) as per this order Rs.71,10,531" 7. On appeal, learned CIT(A) sustained the order of the Assessing Officer. Hence, this appeal by the assessee. 8. At the time of hearing before us, it is contended by....

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....f the order of the ITAT and cooperate in the assessment proceedings. That the assessee did not follow the direction of the ITAT. Therefore, it does not deserve any relief at the end of the ITAT. 10. We have carefully considered the arguments of both the sides and perused the material placed before us. So far as the assessee's conduct of non-appearance before the Assessing Officer is concerned, it will result in rejection of assessee's books of account and estimation of profit by the Assessing Officer which has already been done by the Assessing Officer and the assessee himself has not objected to the rejection of books of account. But, at the same time, if there is any mistake in such estimate of profit, the assessee will certainly be at....