TaxTMI 
TaxTMI 
2015 (2) TMI 288
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....appeal is as under: 1 (i) On the facts and in the circumstances of the case, the ld.CIT(A) erred in deleting the addition of Rs. 19,63,023/- on account of gross profit by invoking the provisions of section 145(3) of the Act, without appreciating the fact that the AO had pointed out various infirmities/discrepancies in the books of accounts." (ii) The ld.CIT(A) ought to have upheld the action of the AO in making the addition on account of low yield of finished product of Rs. 19,63,023/-." 3. The learned DR submitted that there was an abnormal increase in the consumption of power and fuel during the relevant period as compared to earlier year,....
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....process during the relevant period. He submitted that complete excise records were maintained and no defect could be pointed out. He submitted that there was an increase in the cost of input material during the year which has resulted in the lesser GP. He relied on the order of the CIT(A). 5. We have considered rival submissions and perused the orders of the AO and the CIT(A). We find that there was an abnormal increase in the purchase of power and fuel as the sodium acetate solution was purchased at 1776.81 MT during the year as against 96.05 MT in the immediately preceding assessment year. We find that the fuel cost has increased from Rs. 14.66 lakhs in the previous year to Rs. 38.33 lakhs during the relevant year. The turnover of the as....
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....he ground no.1 of the appeal of the Revenue is partly allowed. 6. The ground no.2 of the appeal of the Revenue is as under: 2. On the facts and in the circumstances, the ld.CIT(A) erred in granting relief of rs.26,30,779/- on account of advance of Rs. 43,05,779/- given to the assessee by the company through its unit M/s.Akshay Chemicals (NIPL) without appreciating the fact that the transaction is clearly hit by the provisions of section 2(22)(e) of the Income Tax Act, 1961." 7. The learned DR referred to relevant portions of the assessment order in support of the case of the Revenue. He submitted that it is a clear case of deemed dividend and....
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....pilation which shows that the ledger account in the books of M/s.Nitrochem India P. Ltd. which shows that the assessee was having an opening credit balance of Rs. 40,000/- and likewise, wherever there was a credit balance, the payment made upto that amount could not be added as deemed income in the hands of the assessee. However, the learned counsel for the assessee has fairly conceded that the provisions of section 2(22)(e) of the Act is applicable in the facts of the case of the assessee. 9. We have considered rival submissions and perused the orders of the AO and the CIT(A), and also the copy of ledger account in the books of M/s.Nitrochem India Pvt. Ltd. as appearing at page no.15 and 16 of the compilation filed before us. We find that....
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....e plant & machinery. The learned DR relies on the orders of the AO. We have considered rival submissions. We find that there is no material on record on behalf of the assessee to show that the machinery during the year was new and expenditure made by the assessee was not in the form of repairs and maintenance of old machinery or addition thereto. In these facts, we hold that no interference in the order of the CIT(A) is called for, which is confirmed and the ground no.1 of the CO of the assessee is dismissed. 12. The ground no.2 of the assessee's CO is as under: "2. On the facts and circumstances of the case, the ld.CIT(A) has erred in law and facts in co....
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.... was levied on account of additional income disclosed by the assessee in the returns filed under section 153A of the Act. He submitted that the CIT(A) has dismissed the appeal of the assessee by following the decision of the Third Member of the jurisdictional Ahmedabad Tribunal in ACIT Vs. Kirit Dahyabhai Patel, (2009) 129 ITD 159(Ahd)(TM). He submitted that this decision has been reversed in appeal by the Hon'ble Gujarat High Court in Kirit Dahyabhai Patel Vs. ACIT in Tax Appeal No.1181, 1182 and 1185 of 2010 order dated 3.12.2014. He submitted that the decision of Hon'ble jurisdictional High Court is binding, and therefore, the penalty should be cancelled. The learned DR has relied on the order of the AO. 16. We have considered rival sub....