2019 (6) TMI 1214

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....A/143(3) of the Act. 2. Since the issue involved in these two appeals are common and identical, therefore, these appeals have been heard together and a consolidated order is being passed for the sake of convenience and brevity. The assessee's appeal in I.T.A. No. 170/Kol/2015, for assessment year 2009-10, is taken as a lead case. 3. Grounds of appeal raised by the revenue are as follows: 1. That on the facts and in circumstances of the case, the ld. CIT(A) erred on facts as well as in law in holding that rectification u/s 154 for recomputing book profit u/s 115JB was not warranted, ignoring the fact that the book profit was computed on the basis of return filed by the assessee voluntarily u/s 153A. 2. That the appell....

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....3 dated 22.11.2012 and the order giving effect to the order of the ld. CIT(A) passed by the Assessing Officer u/s 251/153A/143(3) dated 26.12.2012. It is observed that the similar issue was involved in the case of appellant in the immediately preceding assessment year i.e. A.Y. 2008-09 wherein the Assessing Officer has passed the order u/s 154 dated 08.06.2014 enhancing the book profit u/s 115JB in the order passed u/s 251/153A/143(3) dated 26.12.2012. On examination of the order under appeal and earlier orders for the year under consideration it is observed that in the order dated 26.12.2012 passed u/s 251/153A/143(3) the book profit u/s 115JB has been correctly computed at Rs. 9,29,04,504/-. There is no mistake in the said calculation whi....

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....4/-   (149% of purchase) Book profit : Rs. 17,44,73,627/- 3. In the course of the assessment proceedings, the claim was revised with regard 0 the computation of the figure of the book profit. However, the AO de ermined book profit at Rs. 41,34,82,494/- as detailed below: Net Profit as per the Profit & Loss account : Rs. 41,34,82,495/- Add: Bogus Purchase Rs..1,20,41,23,721/-   Rs. 1,61,76 ,06 ,216/- Less: Proportionate bogus sales eliminated Rs. 1,20,41 ,23 ,721/- Book Profit Rs. 41,34,82,495/- 4. The assessee preferred an appeal before the CIT(A) against the order passed by the AO. The CIT(A) allowed the appeal of the assessee in part vide order dt. 22/11/2012 and direct....

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..... 7. No cogent explanation was given by the assessee in the course of the assessment proceedings as regards as the quantum of purchase - sale figure which was rectified and the decrease in sale from 149/0 of purchase to 127% of purchase. The order of the CIT(A) is completely silent on this issue. Moreover, the CIT(A) also didn't elucidate as to how the book profit was correctly computed at Rs. 9,29,04,504/- in the order dt.26.12.2012 u/s.251/153A/143(3) of the Act. 8. Under the circumstances, the order of the CIT(A) is perverse and therefore it is prayed that the same may be set aside and that of the AO (Order dt.08/06/2014 u/s. 154/251/ 153A/143(3) may be restored. 9. ITA 169/Ko1/2015' for the AY 2008-09 ....