TaxTMI 
TaxTMI 
2021 (5) TMI 851
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....acts as well as in law in estimating income at Rs. 72,38,608/- against income of Rs. 5,30,660/- shown under Section 44AD which is also supported by return filed under VAT. The estimate of the CIT (A) being without any material, ignoring the correct position of the case i.e. neither books of accounts are kept nor auditing was done and returns were even farzi for taking loan from bank. " 2. The brief facts of the case are that assessee is assessed by Income Tax Officer, Ward 60 (4), New Delhi. The assessee filled his return of income on 30.09.2009 declaring a total income of Rs. 5,30,660/-. Assessee revised the return on 19.01.2013 at the same income. It is pertinent to note that assessee is an Individual and runs a proprietary concern in th....
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....e were rejected and provisions of Section 145(3) of the Act were invoked. Consequently, 20% of all the expenditure were disallowed amounting to Rs. 12,64,822/-. An addition of Rs. 46,26,000/- was made for investment in purchase of house property. Assessee made cheque payment of Rs. 10 lakhs and cash payment of Rs. 33,35,000/- for purchase of above property . Assessee submitted that the above payment of Rs. 46,26,000/- is made from over-draft account. This contention was rejected by the Assessing Officer as no further information was filed. Further addition of Rs. 8,000/- was made by disallowance under Section 80C of the Act. Thus the total income of the assessee was assessed at Rs. 1,24,29,480/- against the returned income of Rs. 6,38,660....
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.... Kumar clearly shows that he has prepared the books of accounts of the assessee and has also signed the tax audit report for assessment year 2010-11 without examination of the books of accounts and figures there in are bogus. He, therefore, submitted that the addition deserves to be deleted. He further referred to the order of the Addl. Chief Metropolitan Magistrate, Delhi, dated 11.04.2015 wherein the facts of the case are explained in detail. He relied upon those facts. 6. The ld. DR vehemently objected to the arguments of the ld. AR and exceedingly relied upon the findings of the ld. AO and CIT (Appeals). However, he submitted that the order of the ld. Assessing Officer for assessment year 2010-11 had been set aside by the co-ordinate ....
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....for that year. Therefore, looking to the facts that when additions are confirmed on the basis of the order of ld CIT (A) for earlier years which has already been sent back to the ld AO for fresh decision, there is no reason that why this year should also not be restored back to the file of the ld AO for fresh assessment . SO, we also set aside this appeal with similar direction to the file of the Assessing Officer. Needless to say that the assessee is to show correct income with cogent material before the Assessing Officer. Accordingly, the solitary ground of appeal of the assessee is allowed with above direction. 8. In the result, appeal of the assessee is allowed for statistical purposes. ITA. No. 4679 (Del) of 2016 [ AY 2009-10] 9. Th....
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....nt Year 2010-11, the appellant went in appeal before the CIT (A). The CIT (A) while deciding the case held as under:- " 7. The appellant himself admits that his earlier Balance Sheet and Profit & Loss Account are bogus and the books of accounts were never produced before the Assessing Officer during assessment proceedings. Therefore, I am of the view that the appellant's books of accounts should be rejected under section 145(3) of the Income Tax Act, 1961 and appellant's income from business should be estimated. Since the assessment order says that the appellant's sales was Rs. 3,16,93.527/-, I am of the view that appellant's net profit can be reasonably estimated at 5% of the above sales considering the nature of appellant's bu....
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....he current year. Furthermore, he has not disturbed the trading results of the appellant, which showed a turnover of Rs. 9,45,132/-. He has not even examined the source of that stock nor such a huge amount of stock was found during the course of survey conducted at the premises of the appellant. Considering the fact of the case, the addition is deleted. Both these grounds of appeal are allowed. " 10. The Assessing Officer aggrieved, therefore, is in appeal. 11. The ld. DR vehemently supported the order of the ld. Assessing Officer whereas the ld. AR supported the order of the CIT (Appeals). 12. We have carefully considered the rival contentions and perused the orders of the lower authorities. In the return of income the assessee has fil....