TaxTMI 
TaxTMI 
2025 (2) TMI 1738
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....,405/-) The appellant prays that the said disallowance may please be deleted. 2. On the facts and in the circumstances of the case and in law, the Hon' ble CIT(A)/ National Faceless Appeal Centre has erred in upholding the decision of the Ld.AO in disallowing on account of deprecation claim U/s 32 of the Act Rs. 63,07,446/-. The appellant prays that the said disallowance may please be deleted 3. On the facts and in the circumstances of the case and in law, the Hon'ble CIT(A) / National Faceless Appeal Centre has erred in upholding the decision of the Ld.AO in disallowing Rs. 7,14,90,183/- on account of unexplained Credit U/s 68 of the Act. The appellant prays that the said disallowance may please be deleted 4. On the facts and circumstances of the case and law the Nil Hon'ble CIT(A)/ National Faceless Appeal Centre has erred in upholding the decision of the Ld.AO in initiating penalty proceedings u/s 271(1)(c) of the Income Tax Act, 1961. 2.1 The grounds raised by the Revenue are reproduced as under: 1. Whether on the facts and circumstances of the case, Ld. CIT(A) was justified in restricting the estimation of profit at 3% of turn....
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....sessing Officer observed sales turnover of Rs. 273.96 crores but noticed gross profit of Rs. 4,32,488/- only, which resulted in gross profit rate of 0.016%. Therefore, the Assessing Officer carried out inquiries in respect of purchases and sales parties. A list of the purchase and sale parties has been reproduced by the Assessing Officer on page 2 of the assessment order. The Assessing Officer issued notices u/s 133(6) of the Act for verification of the purchase/sales carried out by the assessee. The Assessing Officer noticed that three purchase parties and three sales parties were located on the same address i.e. 801, Balarama, Bandra Kurla Complex, Bandra East, Mumbai. The Assessing Officer further noticed that notices issued u/s 133(6) of the Act had been returned in case of few parties and the few parties did not comply to the notices issued. Thereafter, the Assessing Officer issued summon u/s 131 of the Act to the Director of the assessee company and requested to produce books of accounts along with sales and purchase vouchers, details of assets fixed etc. but despite various opportunities books of accounts were not produced before the Assessing Officer. The Assessing Officer ....
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....on of the appellant viz-a-viz the notices u/s 133(6) having been served during the assessment proceedings in A.Y 2013-14, it is observed that each A. Y is independent A. Y and service of the notices in subsequent year does not change and effect the conclusion drawn in the A. Y under consideration. From the above, it is clear that the appellant did not produce the books of account, the purchases and sales remained unverified and also the peculiar circumstance of the case that the appellant is stated to be doing the business from a small residential flat, which is occupied by the family as well and that there can not be any place left to accommodate computers worth more than Rs 40 lakh and any employees in that place. However the AO's order is silent on the basis of estimating the profit. I am of the view that the estimation of profit at 3% would be reasonable in view of the facts and circumstance of the case. Accordingly the AO is directed to estimate the profits at 3% and reduce the addition, accordingly. Thus the ground of appeal is partly allowed." 4.2 We have carefully considered the rival submissions advanced by the parties and have meticulously examined the material pla....
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....he assessee and ground Nos. 1 and 2 of the appeal of the Revenue are allowed for statistical purposes. 5. In ground No. 2 of the appeal of the assessee disallowance on account of depreciation of Rs. 63,07,446/- has been challenged. Upon due consideration of the material on record, it is observed that the Learned Assessing Officer has noted that during verification conducted by the Inspector of the Department, the fixed assets of the assessee could not be duly verified. Furthermore, the Assessing Officer has expressed skepticism regarding the feasibility of the assessee's business operations being conducted from his residential premises under normal circumstances. Before us, learned counsel for the assessee has submitted that the assessee is willing to furnish all relevant documentary evidence in support of the existence of fixed assets, including bills, vouchers, installation reports, and records of electricity consumption. In light of this submission, it has been prayed that the matter be remanded to the file of the Assessing Officer for fresh verification. Having regard to the facts and circumstances of the case, and in the interest of justice, we deem it appropriate to re....