AI Drafter 
TaxTMI 
TaxTMI 
2020 (4) TMI 537
X X X X Extracts X X X X
X X X X Extracts X X X X
....ring. 3. The grounds of appeal raised by the Revenue are as follows: "01. Whether on the facts and in the circumstances of the cases and in law, the Ld. CIT(A) was justified in deleting the addition of Rs. 20624601/- on account of estimated net profit? 02. Whether on the facts and in the circumstances of the case and in law, the order of the Ld. CIT(A) is erroneous in allowing the brought forward loss adjustment ignoring the section 14 of the Act. 03. That it is prayed to set aside the order passed by the Ld. CIT(A)-24 and restore the assessment order passed by the assessing officer in this case. 04. Department craves leave to add, alter, or modify any ground of appeal during the course of hearing." 4. Brief facts qua the issue are that assessee filed its return of income on 29.11.2014, declaring a loss of Rs. 391,16,73,945/-. The assessee's case was selected for scrutiny u/s 143(2) of the Act. Since the assessee did not produce books of accounts, details of purchases, details of sales and other documents during the assessment stage therefore the Assessing Officer rejected the books of accounts of assessee and estimated net profit @ 0.17% o....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ere not provided. Penalty is being initiated u/s 271(1)(b) for non-compliance of notice u/s 142(1) date 8/8/2016. After comparing the gross profit ratio of the earlier year with the relevant previous year and the reluctance to abide by the requirements of statutory notices by the Director Mr. Sandeep Goyal, in the capacity as the Principal Officer of the assessee company [by order passed u/s 2(35)] which has prevented me to verify the claims made in the Return for the purpose of this assessment, a letter was sent to the Director through email (as given in the Return of Income) proposing rejection the claims made in the audited books of accounts and re-computation of the income of the assessee company by determining profit of the company at the rate equivalent to the rate of gross profit of FY 2012-13 to determine the net assessed income by adjustment of other claims as may be apparent from the evidences gathered during the proceedings. The notice proposing rejection of books of account was duly served on the assessee on the email address given in the ITR (Email:[email protected]). Since no reply was given to my proposal of rejection of the books of ac....
X X X X Extracts X X X X
X X X X Extracts X X X X
....he assessee company under section 145(3) of the Act. The ld CIT(A) noted that during the course of the appellate proceedings, the assessee stated that all the details that were asked by the Assessing Officer, were submitted during the course of the assessment proceedings. On appellate hearing dated 30.11.2017, the assessee produced a chart and a number of paper books were filed giving evidences of various submissions made by the assessee during the assessment proceedings. Therefore, ld CIT(A) noted that since the assessee submitted books of accounts, purchase/sale details and other whatever documents asked by assessing officer during the assessment stage therefore assessing officer was not justified in rejecting books of accounts. Therefore, ld CIT(A) has deleted the addition based on net profit estimation to the tune of Rs. 2,06,24,601/- observing the following: "3rd Ground of Appeal : The third issue is with regard to the addition of Rs. 2,06,24,601/-. The Assessing Officer stated that the materials consumed by the assessee was Rs. 115 Crores and the corresponding sales was Rs. 110 Crores, which had led to a loss from the manufacturing activity during the curren....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... estimated the income of the assessee based on erroneous presumption. Hence, the addition of Rs. 2,06,24,601/- is deleted and this ground of appeal is allowed." 6. Aggrieved by the order of the CIT(A), the Revenue is in appeal before us. 7. The ld. DR has reiterated the stand taken by the Assessing Officer which we have already noted in our earlier para and is not being repeated for the sake of brevity. 8. We heard both the parties and carefully gone through the submission put forth on behalf of the assessee along with the documents furnished and the case laws relied upon, and perused the fact of the case including the findings of the ld CIT(A) and other materials brought on record. At the time of hearing none appeared on behalf of assessee in spite of issuance of notice for hearing more than one occasion and Ld. Departmental Representative(DR), was present for the appellant Revenue. We note during the appellate proceedings assessee produced a chart and a number of paper books which were filed before AO giving evidences of various submissions made by the assessee during the assessment proceedings. In Vol. S-3 of the paper book submitted, at page no.57, the assessee prod....