2015 (5) TMI 184

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....o 6 are on the common issue of rejection of books of account and estimation of profit by ld. CIT(A) at 0.7%. Whereas, the only ground in department's appeal is challenging the decision of ld. CIT(A) reducing estimation of profit from 1% to 0.7%. 3. Briefly the facts relating to the aforesaid issue are, assessee a company is engaged in the business of trading in steel products. For the AY under dispute, assessee filed its original return of income on 31/03/2010 declaring total income of Rs. 71,55,334. Subsequently, assessee filed a revised return on 26/08/10 declaring total income of Rs. 78,51,620. During the assessment proceeding, AO called for the books of account, bills and vouchers, etc. to substantiate not only the expenditure claime....

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....f opportunity is given to assessee. In this context, ld. AR referred to an order of the coordinate bench of ITAT, Hyderabad in case of DCIT Vs. Global Forging Ltd., a company within the same group, in ITA No. 543/hyd/14 and others dated 26/11/14. He submitted that in the referred case, ITAT after considering the submissions of the parties has remitted the matter to AO for determining the profit after verifying the books of account and other supporting evidence. Ld. AR submitted, same principle will also apply to the case of assessee. 6. Ld. DR, on the other hand, submitted before us, during the assessment proceeding, assessee has not been able to prove the entries made in the books of account by furnishing adequate evidence, hence, AO wa....

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....in view the decision of the Tribunal noted above, we set aside the impugned order of ld. CIT(A)and restore the matter to the file of the AO for deciding the matter afresh. The AO is directed to redetermine the profit of the assessee after giving sufficient opportunity to the assessee to produce the books of account and other evidence to substantiate the profit disclosed. The AO shall accordingly redecide the matter in accordance with law and after giving reasonable opportunity of hearing to the assessee." Respectfully following the aforesaid decision of the coordinate bench rendered in case of another group concern under identical facts and circumstances, we remit the matter back to the file of AO to decide the issue afresh after affordi....