TaxTMI 
TaxTMI 
2020 (11) TMI 866
X X X X Extracts X X X X
X X X X Extracts X X X X
....se notice was not required for making addition (b) no notice u/s.143(2) was required in case of set aside assessment. (II). Rejection of book result: On the facts and circumstances of the case and as per law, the learned Commissioner of Income-tax (Appeals) erred in rejecting book result. (III).Gross profit addition: While the learned Commissioner of Income-tax (Appeals) has deleted gross profit addition of Rs. 15,10,886 by telescoping with other additions, the appellant submits that on the facts and circumstances of the case and as per law, the learned Commissioner of Income-tax (Appeals) was not otherwise justified in upholding the addition of Rs. 15,10,886. (IV).Addition u/s.68: On the basis of the evidence furnished and on the facts and circumstances of the case and as per law, the learned Commissioner of Income-tax (Appeals) was not justified in confirming the addition of Rs. 7,95,000 as under:- Pyarchand Ranglal Shah (HUF) 45,000 Vipul M. Bafna 2,50,000 Niesh Jugraj Kothari 5,00,000 7,95,000 (V).Undervaluation of the stock: (a) On the facts and circumstances of the case and ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ginal assessment order. There were no new issues during the assessment proceedings and the assessee was aware about these issues which were remitted back by the Tribunal to the file of the Assessing Officer. In fact, the Tribunal in its order specially mention about the issue which is to be examined by the Assessing Officer and the assessee was supposed to make the compliance. Therefore, it is not necessary to issue the statutory notice under section 143(2) of the Act. It is only necessary to provide the opportunity to plead the case and the same has been provided by the Assessing Officer. Therefore, the principle of natural justice has been observed by the Assessing Officer. The ld. Departmental Representative has also relied on the judgment of the Hon'ble Karnataka High Court, (113 taxmann.com 513) wherein it was held that if the show cause notice had not been issued by the Assessing Officer then the matter should go back to the file of the Assessing Officer with the direction to the Assessing Officer to issue the notice to the assessee and complete the assessment in accordance with law. Therefore, ld. Departmental Representative submits before the Bench that if this Tribunal....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e, the assessing officer and assessee both were aware about the details/documents and directions of the Tribunal. Hence, there is no need to issue notice under section 143(2) of the Act, as the necessary instructions were given by the Tribunal in its order. Therefore, the requirement to issue the notice under section 143(2) of the Act does not arise. We note that the judgements on which ld. Counsel has relied do not apply to the facts of the assessee under consideration. 7. We note that the sub-section (2) of section 143 does not state that notice to be issued when Tribunal has remanded the matter back to the file of the Assessing Officer. It is relevant to quote the provisions of section 143(2) of the Act which reads as follows:- "[(2) Where a return has been furnished under section 139, or in response to a notice under sub-section (1) of section 142, the Assessing Officer or the prescribed income-tax authority, as the case may be, if, considers it necessary or expedients to ensure that the assessee has not understand the income or has not computed excessive loss or has not under-paid the tax in any manner, shall serve on the assessee a notice requiring him, on a date ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... 5. In response, the assessee vide letter dated 23.02.2012 furnished the submission issue-wise. The same are discussed in the foregoing paras." Thus, it is clear that during the assessment proceedings (second round) under section 143(3) r.w.s. 254 of the Act, the Assessing Officer has issued letter on 13.02.2012 to the assessee to furnish books of accounts, bank statements etc. In response to the said letter the assessee has filed documents and submissions, therefore, the principle of natural justice has been observed during the assessment stage. Therefore, the requirement to issue notice under section 143(2) does not arise. Hence, we dismiss the ground no.1 raised by the assessee. 10. Regarding ground no.2 which relates to rejection of books of accounts. Learned Counsel submits before us that ld. CIT(A) has erred in rejecting the books of accounts. We note that during the appellate proceedings, ld. CIT(A) held as follows:- "4.1 As regards addition for unaccounted cash credit, the said addition also gets telescoped against the gross profit addition. The total additions contested from sub ground nos. 1 (a) to (d) of the present appeal are of Rs. 11,21,317/-. In v....
X X X X Extracts X X X X
X X X X Extracts X X X X
..... & L.Account, Capital Account and Balance sheet clearly showing gift being debited in favour of the appellant (Page No.45 to 48 of the paper book-l), Copy of PAN of Nilesh Kothari (Page No.49 of the paper book-I) and Copy of bank statement of the donor (Page No.50 of the paper book-l) (ii) Loan received from Vipul M. Bafna of Rs. 2.50.000. The assessee submitted before us, Copy of account from the books of the assessee showing account of Vipul M. Bafna for F.Y.2004-05 (Page No. 56 and 57 of the paper bookl) showing loan received through account payee cheque. Copy of account from the books of the assessee showing account of Vipul M. Bafna for F.Y.2005-06, F.Y.2006-07 and F.Y.2007-08 (Page No, 58 to 61 of the paper book-l). The ledger accounts show that not only interest was paid but tax was deducted and amount of loan eventually repaid by cheque. Copy of return of income of Vipul M. Bafna (Shah) (Page No.62 & 63 of the paper book-l) was also filed. (iii) Loan received from Pyarchand Ranglal Shah (HUF) of Rs. 45.000. The assessee submitted before us, copy of account from the books of the assessee showing account of Pyarchand Ranglal Shah (HUF) (Page No.51 of the pa....