TaxTMI 
TaxTMI 
2020 (7) TMI 249
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.... Bengaluru, passed under section 250 of the Income Tax Act, 1961 ("the Act") is against the Appellant is opposed to law, weight of evidence, natural justice, probabilities, facts and circumstances of the Appellant's case. 2. The appellant denies itself to be liable to be assessed to a total income of Rs. 61,37,530/- as against the returned income of Rs. 36,37,530/- on the facts and circumstances of the case. 3. The learned Commissioner of Income Tax (Appeals) erred in law in upholding the action of the Assessing Officer in making an ad-hoc addition of Rs. 25,00,000/- to the returned income as reasonable, on the facts and circumstances of the case. 4. The learned Commissioner of Income Tax (Appeals) failed to appreciate that the As....
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....her grounds that may be urged at the time of hearing of the appeal, the Appellant prays that the appeal may be allowed and justice rendered. 3. In course of hearing, the assessee has also raised 3 additional grounds which are as under: 1. The authorities below failed to appreciate tha,t no addition on an estimated basis could have been made without rejection of books and accordingly, the addition made is liable to be deleted on the facts and circumstances of the case. 2. The appellant craves leave of this Hon'ble Tribunal, to add, alter, delete, amend or substitute any or all of the above grounds of appeal as may be necessary at the time of hearing. 3. For these and other grounds that may be urged at the time of hearing of appeal....
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....mpany has increased the sale price for the next years and this finding of the AO has not been controverted by the assessee. The Bench wanted to see as to what is the evidence that the assessee was having an agreed rate contract with the buyers and because of that, the assessee could not increase the sale price in spite of increase in buying cost particularly when 95% of the sale is made to its sister concerns. In reply, it was submitted by learned AR of the assessee that the agreement regarding sale price to its sister concern was made orally and therefore, there is no evidence in this regard. He drawn our attention to page 41 of Paper Book and pointed out that on this page of Paper Book is the month wise details of exchange rate in the pre....
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....ug the leakages in the gross under estimation of the gross profit and such addition is only about 1% of the total sales receipts since satisfactory explanation is not offered before him. The AO has placed reliance on the judgment of Hon'ble Apex Court rendered in the case of S. N. Namasivyam Chettiar Trading Co. Ltd., Vs. CIT (Panj) 38 ITR 579 and also on the judgment of Hon'ble Bombay High Court in the case of Dhondiram Dalichand vs CIT (Bom) 81 ITR 609. Hence, it is seen that the addition was made by the AO on this basis that regarding fall in GP, no satisfactory explanation is furnished by the assessee before him. At this juncture, we examine the applicability of the Tribunal order cited by learned AR of the assessee having been rendered....
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....r 2008 and during October to December 2008, it has further increased up to 1.54US$ per meter. When the purchase cost is rising both in terms of rate per meter in US$ as well as the conversion rate of US$ into Indian rupees and the sale is mainly to the sister concerns that too without any agreed sale price in advance, the small addition made by the AO in the range of about 1% of the total sale value is neither excessive nor unreasonable. Since no explanation was offered by the assessee before the AO regarding fall in GP rate, the Tribunal order cited by learned AR of the assessee is not applicable in the present case. Moreover, the ratio of this Tribunal order is this that income cannot be estimated if the books are not rejected. In the pr....