TaxTMI 
TaxTMI 
2014 (7) TMI 805
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....of convenience. 2. The main issue involved in these appeals relates to estimation of the income of the assessee from business. 3. Facts of the case in brief are that the assessee company, engaged in the business of manufacturing of rerolled steel products and manufacturing and erection of telecom and transmission towers, filed its return of income for the assessment year 2009-10, declaring a loss of Rs. 8,08,13,432 under normal provisions, and book profit of Rs. 8,00,62,073 under S.115JB of the Act. In the course of assessment proceedings, the Assessing Officer observing that the expenditure claimed by the assessee of Rs. 479,19,18,645, for an aggregate manufacturing and trading turnover during the year of Rs. 576,17,18,891, was very ....
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....e failed to produce details of opening stock, purchases, sales and closing stock of manufactured goods and traded goods separately in terms of quantity and cost; f) Assessee failed to produce details of where and how the additional machinery was put to use and the increase in production and electricity consumption after the installation of the machinery claimed to have been put to use during the year. The assessee thus could not justify the claim for depreciation; g) Assessee failed to produce the day to day consumption of raw material details and the corresponding production details relating to manufactured goods, and thus, the actual production and corresponding raw material consumption details could not be verified; h) The net p....
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.... adoption of a rate of 0.5% would be reasonable; and non-allowance of depreciation from such estimated income is against the instructions of the CBDT and the decisions of the Tribunal in similar matters. However, at the time of hearing, learned counsel for the assessee pleaded for one more opportunity to the assessee, to furnish books of account and other details before the Assessing Officer, and for the re-examination of the matter at the level of Assessing Officer. He also furnished before us a copy of the order of the Tribunal dated 13.8.2013, in cross appeals in the cases of M/s. Sujana Universal Industries Ltd., Hyderabad (ITA No.304 & 475/Hyd/2013); and M/.s Sujana Metal Products Ltd. (ITA No.305 and 474/Hyd/2013), where considering s....
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....the Assessing Officer for denovo assessment after examining the books of accounts and other documents. We also direct the assessee to produce all its books of accounts, documents, bills, invoices and any other information called for by the Assessing Officer and cooperate in finalisation of the proceeding. In the event, the assessee does not co-operate by producing the books of accounts and other information called for by the Assessing Officer or if the Assessing Officer on examination of the books of accounts and other documents finds that there are discrepancies which the assessee is not able to explain, the Assessing Officer would be at liberty to take an independent decision in the matter in accordance with law. The Assessing Officer sha....