TaxTMI 
TaxTMI 
2025 (4) TMI 2146
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....d circumstances of the case, the Ld. CIT(Appeals) NFAC, has erred in having confirmed the assessment order which is illegal, without jurisdiction, void abinitio and is liable to be quashed. 3. On the facts and circumstances of the case the Ld.CIT(Appeals)NFAC, has erred in having confirmed the assessment order which was passed by the Ld.AO even without having served upon any draft assessment order on the assessee as required under the law. 4. On the facts and circumstances of the case the Ld. CIT(Appeals) has erred in having dismissed the assessee's appeal as ex-parte without having afforded reasonable opportunity of being heard and thus the impugned order is against principle of natural justice. 5. On the fac....
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....uding a best judgment assessment in A.Y. 2017-18. 3.1. The Ld. AO identified discrepancies in the firm's claimed expenses, noting that some expense heads were either new or abnormally high. However, the firm failed to provide supporting documents. Since the firm had not audited its accounts despite crossing the turnover threshold, the AO rejected the books under Section 145 and proceeded to estimate its income. Using an 8% net profit ratio based on past trends, the AO applied this rate to the total receipts Rs 54,37,30,100/- and determined an estimated income of Rs. 4,34,98,408/-. The assessment was finalized under Section 144r.w.s144B, with penalties initiated Section 271B for audit non-compliance and Section 270Afor misrepresentation a....
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....estimation was justified. 7. We have considered the rival submissions and perused the material on record. It is not in dispute that the assessment was completed ex parte under Section 144. While the AO applied a net profit rate of 8% on gross turnover, including scrap sales, relevant factors such as past assessed gross profit rates, depreciation, and nature of scrap sales were not adequately considered. In the interest of justice and fair play, we are of the view that the matter deserves to be reconsidered. 8. Accordingly, we set aside the impugned order of the CIT(A) and remand the matter to the file of the Assessing Officer with a direction to frame a fresh assessment after considering: * Past years' gross profit and net pr....