TaxTMI 
TaxTMI 
2015 (12) TMI 1412
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....ed in deleting the addition of Gross profit of Rs. 6,79,613/- at 10% of total turnover of Rs. 1,37,82,299/- made by the Assessing Officer. 2. On the facts and in the circumstances of the case and in Law, the Ld. CIT(A)-III, Surat has erred in deleting the addition on account of cash credit amounting to Rs. 3,03,115/- made by the Assessing Officer. 3. On the facts and in the circumstances of the case and in Law, the Ld. CIT(A)-III, Surat has erred in deleting the addition on account of unexplained addition to capital of Rs. 2,00,000/- made by the A.O. 2. The relevant material facts are like this. The assessee before us is, as the Assessing Officer himself puts it, one of the entities in "Rathi group of cases" which was subjected to s....
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....ortunity to rebut the findings. Even the book results have not been rejected by invoking the provisions of section 145 of the IT Act. This kind of an addition is not sustainable, especially in view of the fact that the special auditor appointed by the Department to make an audit of the appellant group (Rathi Group) books of account has not offered any adverse comments in respect of the regular books. The next ground of appeal is regarding addition on account of cash credit of Rs. 3,03,115/- and interest thereon and addition to capital of Rs. 2,00,000/-. During the course of appellate proceedings, the ld. AR submitted that the confirmation of the depositors along with name, address and PAN were submitted to the AO during the course of ass....
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....conceived by the Assessing Officer about the assessee from the vicinity which will goad him to just conclusions. The Assessing Officer must not act dishonestly or vindictively. From perusal of the finding of Assessing Officer for adopting the profit rate at 10% in the finding (extracted supra), no reasons are discernable. The Assessing Officer was of the view that expenses must have been debited by the assessee in his regular books of accounts. In other words, the assessee has been doing business in his name for which regular books of accounts are being maintained and income has been offered, accounts are audited. Thus, Assessing Officer formed an opinion that expenses relatable to benami transaction must have been debited by the assessee i....
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.... reasoning assigned by the Ld. First Appellate Authority vis-à-vis that of Assessing Officer in the findings extracted above, then scale would tilt in favour of Ld. First Appellate Authority, because Ld. First Appellate Authority has made reference to the comparable cases as well as the opinion of special auditor. On the other hand, Ld. Assessing Officer did not point out any comparable cases or any special material which has an influence for giving rise to such a profit. The other discussion made by Assessing Officer in assessment order relates to the issue, as to why alleged books of accounts should not be rejected. But after rejection of the books, the ld. Assessing Officer failed to substantiate his conclusion for computing the p....