TaxTMI 
TaxTMI 
2014 (6) TMI 36
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....s under:- "1. On the facts and in the circumstances of the case, the ld. CIT(A) has erred in deleting the addition of Rs.1,12,16,582/- made on estimated basis, ignoring the facts that the assessee has failed to produce the documents at the time of assessment proceedings." 3. Briefly stated the facts giving rise to these cases are that the assessee filed its return of income declaring a total income of Rs.52,03,727/- and paid tax thereon. Subsequently, the case was selected for scrutiny assessment and a notice u/s 143(2) of the Income Tax Act was served on the assessee. Further, another notice u/s 142(1) of the Act was also served on the assessee to submit a copy of e-file return of income along with copy of ....
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....uld be submitted on receipt of the decision by the Hon'ble High Court. The Assessing Officer issued another show cause notice dated 7.12.2011 stating that if the requisite details are not submitted by the assessee, an ex parte order and assessment will be passed and adverse view will be taken on the issues of unsecured loan, entire additions to the fixed assets, depreciation claimed and net income will be taken as 5% of total turnover in absence of details/evidence in support of final accounts. 5. The assessee submitted a reply on 12.12.2011 along with documents including the balance confirmation in respect of unsecured loan/detail of addition in fixed assets, respective bills of assets, copies of lorry receipts, gate register copies and s....
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....on-cooperative during the assessment proceedings. From operative para 11, we observe that the Assessing Officer has not given any basis of the estimation of net profit. At the same time, from the impugned order, we also observe that the Commissioner of Income Tax(A) accepted the book results of the assessee by holding as under:- "6.8 Keeping in view the above, I am satisfied with the explanation of the appellant regarding the decline in the net profit during the current year compared to the immediately previous year. The GP/NP shown in the current year is certainly lower compared to the last 3 years, however compared to the immediately succeeding year and the fifth year pre....
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.... Income Tax(A) observed that the Assessing Officer had not made any specific adverse observation with regard to any claim of expenses of the assessee. In these circumstances, we observe that the assessee was stressing on the point of jurisdiction with a request to transfer the case to Delhi which was kept pending, awaiting the order of section 127 of the Act but the Assessing Officer proceeded to complete assessment proceedings which were on the verge of completion of limitation time and the Assessing Officer estimated net profit @5% of the turnover without considering previous year's results of the assessee and any other suitable comparable case. As the Assessing Officer could not get an opportunity to examine the details, evidence and exp....
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....ch reads as under:- "1. That having regard to the facts and circumstances of the case, ld. Commissioner of Income Tax(A) has erred in law and on facts in not quashing the impugned assessment order passed by ld. AO on the ground that jurisdiction was not validly assumed upon the assessee company and the impugned assessment order has been passed without considering the provisions of section 124 of the Act and in violation of principle of natural justice and consequently ld. Commissioner of Income Tax(A) has decided the ground no. 1, 2 & 3 against the assessee." 11. Since we have restored main issue to the file of Assessing Officer, therefore, the legal objection of the assessee regarding jurisdiction is also restored to t....