2018 (3) TMI 225

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....llowing questions of law for our consideration: 1. Whether on the facts and in the circumstance of the case and in law, the Tribunal was justified in law in holding that there was no justification for rejection of books of accounts by the Assessing Officer? 2. Whether on the facts and circumstances of the case and in law, by accepting the books of accounts of the Assessee, the Tribunal was justified in deleting the addition made by the Assessing Officer, on the basis of estimation of gross profit at the rate of 2 percent of the sales? 3. The Respondent is engaged in trading of steel and other engineering items. The Assessing Officer during scrutiny proceedings for assessment year 2005-06 found that the Respondent had sales of Rs. 5....

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....ing Officer estimated the gross profit on the basis of 2 percent of the sales. This resulted in enhancement of gross profits from Rs. 26.08 Lakhs to Rs. 1.18 Crores. 5. Being aggrieved with the order dated 31 December 2007, the Respondent-Assessee filed an Appeal to the Commissioner of Income Tax (Appeals) ("CIT(A)" for short). By an order dated 20 January 2009, the CIT(A) dismissed the Respondent-Assessee's Appeal. On further Appeal, the impugned order of the Tribunal allowed the Respondent-Assessee's Appeal. This inter alia on the ground that it found that the Respondent had along with return of income filed audited accounts along with audit report for the subject assessment year. Moreover, during the course of scrutiny, com....