2025 (9) TMI 295

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....red as "the Act") arising out of order dated 25.03.2013 of the Learned Assistant Commissioner of Income Tax, Circle-38(1), New Delhi (hereinafter referred as "the Ld. AO") under Section 143(3) of the Act for assessment year 2010-11. 2. Brief facts of the case are that the assessee filed return of income on 14.10.2010 showing income of Rs. 1,40,68,744/-. The return of income included disclosure of additional income of Rs. 70,00,000/- at the time of survey under Section 133A of the Act in accordance with statement of Shri Vikram Kumar, partner. The case was selected for scrutiny manually. Notice under Section 143(2) dated 12.09.2011 was issued. Further, notices under Section 142(1) of the Act were issued. Shri Arvind Kwatra, CA/AR attended....

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....come at Rs. 2,10,68,944/-. 8. Learned Authorized Representative for the for Revenue submitted that Ld. CIT(A) by referring to judgment in case of K.P. verghese Vs. ITO 131 ITR 597 upheld the addition. 9. From examination of record in light of aforesaid rival contentions, it is crystal clear that a survey under Section 133A of the Act was carried on 17.09.2010 in premises of assessee's firm at S-11, Greater Kailash-II, New Delhi. Shri Vikram Kumar, Partner in statement offered additional income of Rs. 70,00,000/- for assessment year 2010-11. Assessee filed return of income on 14.10.2010 declaring income of Rs. 1,40,68,744/- including Rs. 70,00,000/- surrendered at the time of survey. Ld. AO vide order dated 25.03.2013, made addition of....

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....ve in The assessment order and submissions of the appellant show cause was issued vide order sheet entry dated 13.01.2015, to the appellant as to why his book results should not be rejected and profit rate of 8% not be applied. After considering his reply I have no option but to reject the books of accounts of the appellant and determine income at 8% of the total turnover...". The order of Ld. CIT(A) is silent on what reply was furnished to her by the assessee; and why it did not find favour with her. The Ld. CIT(A) has also not explained why she has selected 8% as the net profit rate. As the order of Ld. CIT(A) is silent on these important aspects, we are of the view that the entire issue requires fresh consideration by Ld. CIT(A) for a de....