TaxTMI 
TaxTMI 
2023 (5) TMI 110
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....9/2019 issued by the CBDT and also erred in not regularizing the same within 15 working days of its issuance and hence the order u/s 154 of the Act dated 31.12.2021 passed by the ld. CIT(A) for reinstating the dismissed appeal shall be treated as invalid and shall be deemed to have never been issued and consequently the impugned order under appeal becomes non-est and bad in law. [ii] On the facts and in the circumstances of the case and in law, the Ld. CIT(A) has erred in reinstating the appeal by passing an order u/s 154 of the Act dated 31.12.2021 which, on the request of the assessee, was dismissed as withdrawn vide order dated 28,.12.2020 which is against the law and there being no such enabling facts and circumstances of the case. [iii] On the facts and in the circumstances of the case and in law, the Ld. CIT(A) has erred in restricting the addition of Rs.2,00,41,167/- made by the Assessing Officer by estimating the profit @ 20% on unaccounted job receipts of Rs.10,02,05,835/- to Rs.50,10,292/- by holding that it is reasonable to consider 5% as net profit of the suppressed job work charges as income for the year under consideration. [iv] On the facts and in the circum....
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....essee by the order of this Co-ordinate Bench of the Tribunal (supra). 5. We see no reason to take any other view than the view so taken by the Division Bench of this Tribunal in assessee's own group cases (supra) vide order dated 21.12.2022, the Tribunal has inter alia observed as follows: "11. We have heard the submissions of both the parties on merit. The ld. CIT-DR for the Revenue submits that during the course of search action conducted on 19.02.2015 in the group cases of Sumeet Industries Ltd. of Surat and huge incriminating evidence related to unaccounted job work receipt were found during said search action and statement of Dinesh Agarwal, accountant and Shri Rajkumar Somani, Director of Sumeet Industries Ltd. were recorded on oath under section 132. In the statement, the director of assessee admitted unaccounted job receipts, which were outside books of account and Department has proved with credible evidence that assessee has maintained two sets of books of account of job work and accounted job work separately. The assessee explained about the data of Puirchi software by giving of colour of internal processing were to give mislead in fact to cover their act of evasion o....
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....ddition was restricted to 5%. And on further appeal before Tribunal in IT(SS)A No(s). 67-68/SRT/2021 and ITA No.157/SRT/2021 in the case of Sitaram Prints Private Limited Vs. DCIT, dated 17.08.2022, the action of CIT(A) in those appeals was upheld. So the issue raised in all the appeals / cross appeals are covered. 15. In rejoinder Ld. CIT-DR for the Revenue submits that order of Tribunal in the case of Sitaram Prints Private Limited (supra) is not helpful in the present set of appeals filed by assessee. As in those cases, the Revenue has not filed appeal before Tribunal due to low tax effect. And the order of Ld. CIT(A) was upheld for the reasons that Hon'ble Tribunal has no power to enhance such addition. However, in case of present assessee, the revenue has filed its appeal for seeking to restore the additions made by the assessing officer. 16. We have considered the rival submission of both the parties and have gone through the order of lower authorities carefully. We have also deliberated on various case law relied by lower authorities. We have also considered the entire material filed before us. We find that in the search action was carried out in the group cases of....
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....Purchi software does not match with the regular books of account, thus the Assessing officer has proved beyond doubt with detailed discussion in the assessment order that the data recorded in this file remains unaccounted. The documentary evidences in the form of invoices and job bills found, there were several differences between these documents, which the Assessing Officer has narrated in detail in the assessment order. The entries have been made from about 50 parties by the DDIT (Inv.) to verify the contention of assessee about reprocessing work from whom enquiries were made, but no one had stated that they have given any reprocessing work to the assessee. All these details were analysed by the Assessing Officer and proved beyond doubt that the assessee was indulged in activities of doing job work which remained unaccounted. Thus, the contention that no unaccounted job work was done by assessee was not accepted and the corresponding submission of assessee was rejected. 11. We find that the ld. CIT(A) on the alternative contention of addition for considering gross profit of assessee for last preceding years as well as electricity consumption and other expenditure was of the vi....
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....extent of 5% of alleged unaccounted job work receipt followed by the decision of Hon'ble jurisdictional High Court in the case of President Industries (supra), wherein it was held that "on the issue of suppression of said consideration only the addition to the extent of profit element may be made". We are also of the view that wherein there is no fool proof of evidence of unaccounted sales or independent material to substantiate such allegation, only profit element to avoid the possibility of revenue leakage is sufficient to meet the ends of justice and not the substantial part of the disputed transaction. Therefore, we are not inclined to enhance the disallowance of alleged unaccounted job work receipt by assessee. Hence, ground No.1 to 4 raised by Revenue are dismissed. 18. Considering the fact that we have upheld the action of ld CIT(A) hence, sole ground of appeal raised by assessee in its appeal is also dismissed. In the result, assessees appeal is dismissed. 19. Ground No.5 and 6 in Revenue's appeal relate to further reducing the disallowance in rectification order under section 154 of the Act passed by Ld. CIT(A) in granting credit of additional income of Rs.31 lak....