2016 (1) TMI 41

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....or the assessee appeared and hearing was adjourned. Thereafter, the assessee moved an application for adjournment which was also allowed. However, on the date of hearing i.e. 16.9.2015 in response to the notice of hearing none has come present on behalf of the assessee. 3. With the assistance of the ld. DR, we have gone through the record carefully and proceed to decide the appeal on merit. The Revenue has taken following grounds of appeal: "[1] On the facts and circumstance of the case and in law, the Ld. CIT(A)-I, Surat has erred in deleting addition made on account of sundry creditors for want of any proof. [2] On the facts and circumstance of the case and in law, the Ld. CIT(A)-I, Surat has erred by estimating asses....

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....income Rs.1,49,68,305/- Taxable Income Rs.NIL   5. The ld.AO has passed an ex parte assessment order under section 144 of the Income Tax Act. He made various additions to the total income of the assessee. The disallowances made by the AO are as under: "i. 20% disallowance out of sundry creditors of Rs. 92,09,983/- ii. 20% disallowance out of power and fuel expenses of Rs. 55,31,083 iii. Rent of Rs. 99,03,860 iv. 20% disallowance out of repairs to machinery of Rs. 1,88,595/- v. 20% disallowance out of other expenses of Rs. 28,54,867 vi. Depreciation of Rs. 1,49,07,251/-" 6. Dissatisfied with the determination of the income at Rs. 1,95,08,550/-, the assessee went in ....

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.... 8.1 On the basis of above, net profit before the interest depreciation and tax has been arrived at Rs. 1,02,797-282/- after claiming of interest of Rs. 9,45,561/-and depreciation of Rs. 1,49,07,251/-The net profit has been shown at (-)Loss of Rs. 46,37,530/-This ground of appellant i.e. Assessing Officer should have started the computation from the loss Rs. 46,37,530/- arises from this fact. However, in the schedule of computation of total income the profit and gains from Business have been shown at Rs. 1, 49, 68, 305/- against which, brought forward loss of Rs. 1, 49. 68, 305/- has set off showing the returned income at NIL. This means that from the loss of Rs. 46,45,910/- a profit of Rs. 1,49,68,305/- has been arrived at after making....

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....us expenses to the extent claimed. However, it could meet the ends of justice, if the taxable income of the appellant is estimated as a percentage of gross receipts shown at Rs. 2,46,12,599/-. Therefore, the total income of the appellant is taken as 50% on this amount i.e. Rs. 1, 23,06,299/- The assessing officer himself allowed set off of loss / depreciation to the extent of Rs. 87,59, 467/- on the basis of assessment order for Asstt Year 2008-09. Therefore, the total income assessed by the Assessing Officer is reduced to Rs. 35,46,833/-. (Rs 1,23,06,299 - Rs. 87,59,467/-) This ground of appeal is therefore, partly allowed. 9. In ground no. 4 the appellant states that it made disallowance u/s 40a(ia) was made in n the return out o....