TaxTMI 
TaxTMI 
2017 (8) TMI 941
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.... not authorized and not in his presence. 2. The Ld. CIT(A) in the facts of the case has erred in law and fact in confirming income from Brick kiln Hanuman Gram Udyog Mandai of appellant without any evidence or any material as the AO computed thee income arbitrarily by estimating the same without confronting the material for such estimate ignoring the principles applied in best judgment assessment & section 44AD for estimating the production and price of bricks. 3. That the Ld. CIT(A) has erred in considering the fact that the AO against facts and without any basis or evidence made the alleged computation and obtained the acceptance of the appellant which is against law and facts and not admissible, as any admission of the appellant which is against facts is not binding on the appellant. The admission being against facts and not supported with any material is liable to be ignored in law and therefore, the addition of income based on the same is also liable to be cancelled. 4. That the Ld. CIT(A) has also erred in considering the alleged computation for estimation on the basis of acceptance, since the appellant had disputed the same computation for excessive turnover and high r....
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....escind any ground of appeal on or before hearing the appeal. In theses circumstance it is prayed that the appeal may kindly be accepted as prayed for and all the additions may be deleted. 3. The grounds raised in the Assessee's appeal (ITA NO. 6591/DEL/2016) (ay 2012-13) read as under:- 1. That Ld. CIT(A) in the facts of the case has erred in law in upholding the estimation of income for Hanuman Gram Udyog Mandai done by the AO on the basis of dumb documents which were not taken into possession from the assessee and were even impounded against law from a person who was not authorized and not in his presence. 2. The Ld. CIT(A) in the facts of the case has erred in law and fact in confirming income from Brick kiln Hanuman Gram Udyog Mandai of appellant without any evidence or any material as the AO computed thee income arbitrarily by estimating the same without confronting the material for such estimate ignoring the principles applied in best judgment assessment & section 44AD for estimating the production and price of bricks. 3. That the Ld. CIT(A) has erred in considering the fact that the AO against facts and without any basis or evidence made the alleged computation and ob....
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....are even fixed by the State Government for several purposes. 8. The Ld. CIT(A) in the facts of the case erred in not allowing deduction for shortage in production and sale @ 15% as allowed in cases of the other Brick kiln in the locality. 9. That the Ld. CIT(A) has erred in upholding the charging of interest as consequential without appreciating that interest is not chargeable when income is estimated on presumptive basis u/s 44AD or-on best judgment. 10. The above grounds are without prejudice to each other. 11. That the petitioner craves leave to add, amend or rescind any ground of appeal on or before hearing the appeal. In theses circumstance it is prayed that the appeal may kindly be accepted as prayed for and all the additions may be deleted. 4. The brief facts of the case are that assessee filed the e-return declaring an income of Rs. 19,61,850/- on 30.9.2012 which was processed u/s. 143(1) of the Income Tax Act, 1961 (hereinafter referred the Act). Subsequently, the case was selected for compulsory scrutiny. Statutory notice under section 143(2) of the I.T. Act, 1961 dated 12.9.2013 was issued and served upon the assessee for compliance by 27.9.2013. In this case a ....
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....it Report alongwith balance sheet and trading and profit and loss a/c for 2012- 13; copy of application dated 28.3.15 to JCIT u/s. 144A with reasons regarding excessive and arbitrary assessment by AO; copy of directions issued by JCIT to AO u/s. 144 dt. 28.3.15; copy of inventory and rates recorded at Thakar Dass Bhatta Udyog, Durjanpur during survey operation u/s.133(A) dated 21.3.12; copy of annexure showing excessive estimation of turnover and income with copy of bills as submitted to CIT(A); copy of document queried by AO showing actual production during the year. He further stated that CIT(A) has erred in confirming income from Brick Kiln Hanuman Gram Udyog Mandal of appellant without any evidence or any material as the AO computed the income arbitrarily by estimating, the same without confronting the material for such estimate ignoring the principles applied in best judgment assessment and section 44AD for estimating the production and price of bricks. He further stated that Ld. CIT(A), has wrongly computed the income by estimation, without any basis, ignoring the principle of best judgment method and the income should have been estimated by applying net rate of profit @8% as....