2021 (3) TMI 722

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....ly. Since both the appeals relate to the same assessee and of the identical grounds these are heard analogously and are being disposed of by a common order. ITA No. 630/Ahd/2018 (A.Y. 2007-08):- 2. It appears that there is delay of 604 days in preferring the instant appeal before us. The Ld. Counsel appearing for the assessee submitted that mainly due to discontinuation of the business and shifting of papers and/or documents the order passed by the Ld. CIT(A)-2 got misplaced and/or not found and ultimately the appeal could not be filed before the Hon'ble Tribunal in due time. Initially when the matter was heard no such documents was available on behalf of the assessee to substantiate the reason for delay in filing the appeal late before ....

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....e, the auditors note specifically mentioning that the appellant company had disposed and/or were in the process of disposing of major part of its fixed asset and had almost discontinued the business activities appearing in Note No. 10 of Page 18 of the audited accounts of the appellant for F. Y. 2014-15 has been made available before us. The above documents including memo that too issued by the Government Companies is sufficient to substantiate the plea taken by the assessee for preferring the instant appeal before us with the delay of 604 days due to discontinuation of business and shifting of papers and documents. We do not find any laches on the part of the assessee in preferring the appeal late keeping in view the above facts. Hence, t....

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....applied @ 20% in the case in hand which was rejected by the Ld. CIT(A). Hence, the instant appeal before us. 6. We have heard the Ld. Counsel appearing for the parties, and we have also perused the relevant materials available on record before us including the order passed by the Coordinate Bench dated 10.01.2014 in ITA Nos. 788&789/Ahd/2013 for A.Ys. 2005-06 & 2006-07. The relevant portion of the said order on the identical issue is reproduced herein below:- "8. We have heard the rival submissions and perused the material on record. It is an undisputed fact that the Assessee had suppressed sales and also suppressed the expenses and in view of these facts, the books of accounts of the Assessee cannot be relied and was therefore rightly r....

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....th respect to the other decisions relied by CIT(A), the facts of those case are not before us nor have been placed by Assessee before us and therefore we are unable to comment about the applicability of the decisions of those cases to the facts in the present case. Further, we find that CIT(A) has adopted Net Profit rate of 15.15% for A.Y. 06-07 as compared to 19.51% for A.Y. 05-06. When the books are rejected, we do not find any justification for adopting the Net Profit of 15.15% for A.Y. 06-07 which is lower then the rate of 19.51% for A.Y. 05-06 which has been considered for estimation of income. Considering the totality of the aforesaid facts we are of the view that the estimate of G.P. made by A.O. @ 40% was on a higher side but at the....