TaxTMI 
TaxTMI 
2024 (12) TMI 1809
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.... Ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, vide order dated 19.11.2024 passed for the Assessment Year 2016-17. 2. The Assessee has taken the following grounds of appeal: 1. The learned CIT(A) has erred in law and on facts in estimating Gross Profit and making a addition without rejecting the books of account of the appellant. 2. The learned CIT(A) has erred in law and on facts in making an addition of Rs. 5,15,136/- by estimating Gross Profit at the rate of 5.02%. 3. In any case, the GP estimation is on the higher side. 4. Both the lower authorities have passed the orders without properly appreciating the facts and they further erred in grossly ignoring various s....
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.... expenses incurred in contravention of the provisions of Section 40A(3) of the I.T. Act and also erred in estimating the gross profit holding that general disallowance due to substantial cash purchase can be made by comparing average G.P. for past years to take into account any element of profit suppression due to substantial cash purchases without appreciating the fact that the addition was not made on account of substantial cash purchases. 3. On the facts and in the circumstances of the case and in law, the Ld.CIT (Appeals) has erred in deleting the addition of Rs. 12,92,16,100/- made by the Assessing Officer u/s 40A(3) of the Act without appreciating the fact that as per the land holding documents submitted by the assessee durin....
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....uce purchased by the assessee for which payments exceeding Rs. 20,000/- were made are not covered by the provisions of Rule 6DD(e) (i) of the I.T. Rules. 4. In this case the return of income has been filed by the assessee declaring total income of Rs. 22,38,020/- and the assessment has been completed determining the total income at Rs. 13,14,54,120/- by making addition of Rs. 12,92,16,100/- u/s. 40A(3) of the Act. The Ld.CIT(A), deleted the addition made by the Assessing Officer u/s.40A(3) of the Act on the ground that the provisions of Rule 6DD(e)(i) are applicable to the assessee. Having deleted the addition made u/s.40A(3) of the Act, the Ld.CIT(A) determined the gross profit at the rate of 5.02 % based on the average gross profit of ....