INCOME TAX ACT, 1961

Section 145

Accounting method - Rejection of books of account - NP determination - Adoption of N.P. at 8% by AO

Assessee had challenged the ex-parte order passed by CIT(A), though the presence of the counsel was marked in the captions of order. Assessee pointed out that AO made trading addition by adopting N.P. at 8% as well as the addition on account of loan and advances shown in the balance sheet. Further, AO had also made an addition on account of cash in hand, which is also balance sheet item. CIT(A) dismissed the appeal of the assessee summarily without even considering the arguments of assessee as reproduced in order. Thus, assessee submitted that he might be given one more opportunity to produce the relevant record, books of account. Held: CIT(A) had reproduced the submissions of the assessee, however, the contentions as raised by the assessee in the written submission regarding the rejection of books of account, adoption of N.P. at 8% by AO, without considering the past history of the assessee's own case and the additions made on account of loan and advances and cash-in-hand have not been properly analyzed and discussed by CIT(A). Accordingly, order of CIT(A) was set aside and the matter was remanded to CIT(A) for deciding the same afresh after giving one more opportunity of hearing to the assessee as well as to produce the books of account and other supporting evidence.

REFERRED :

FAVOUR : Matter remanded.

A.Y. : 2012-13

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