2015 (10) TMI 1869

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.... the very outset, did not press the Cross-Objection filed by the assessee; hence, the Cross-Objection filed by the assessee is rejected. 3. In the first ground of appeal, the Revenue has pleaded that ld. CIT(A) has erred in deleting the addition of Rs. 78,03,060/-. 4. The brief facts of the case are that the assessee is a partnership firm engaged in the business of trading in chemicals and maintenance materials. It has filed its return of income on 30.10.2007, declaring total income at Rs. 13,74,870/-. The case of the assessee was selected for scrutiny assessment and notice u/s 143(2) of the Income-tax Act was issued on 17.07.2008. This notice was served upon the assessee on 28.07.2008. According to the Assessing Officer, a notice u/s....

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....Authority has allowed the assessee to place on record the details. The ld. CIT(A) has called for a remand report from the Assessing Officer. After going through the remand report of the Assessing Officer, the ld. CIT(A) has partly allowed the appeal of the assessee and deleted the major addition. The finding recorded by the CIT(A) read as under:- "6.3 The third ground of appeal is related to the addition of Rs. 78,76,931/- on adhoc base for disallowance at 25% of the purchases and all expenses including depreciation at Rs. 3,15,07,724/- as per para 4 of the order. As per the remand report, verification in respect of purchases and commission expenditure was made and no discrepancy was found. The appellant had reconciled the....

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....purchase parties have furnished the assessee's copy in their books of account and details of total purchases made by the assessee from them. Similarly all the parties filed confirm/computation of income/TDS certificates etc. The details submitted by these parties have been compared with the details of purchases and commission furnished by the assessee. No discrepancies have been noticed in purchases and commission payment shown by the assessee in details of purchases and commission." 9. Since the disallowance was made in an ex-parte assessment order, once the assessee was given an opportunity to reconcile its expenses, the Assessing Officer was satisfied with the quality of the evidence produced by the assessee. He did not f....