CIT has the power to remit the matter to the file of AO if satisfied the needs of reconsideration

Last updated: 23 August 2012

Court :
INCOME TAX APPELLATE TRIBUNAL

Brief :
In this case Assessing Officer noted that assessee had not attended proceedings in response to the notices dated 12.11.2009 and 23.12.2009, even after their proper service upon the assessee and has also not furnished any explanation. Assessing Officer further noted that there was cash deposits in assessee’s Axis Bank to the tune of ` 10,96,000/-. Assessing Officer held that the cash deposits in the bank to the tune of ` 10,96,600/- should be treated as turnover of the assessee in addition to the amount declared in the return in the tune of ` 26,72,963/-. By this way Assessing Officer noted that the total turnover of the assessee for the year 2006-07 comes to ` 37,69,863/-. Assessing Officer noted that the assessee has not submitted any bill or vouchers. Hence, he rejected the books of account of the assessee and completed the assessment by considering the net profit of the assessee @ 10% of the total turnover of ` 37,69,863/- and accordingly, taxable income was computed at ` 3,76,986/- as against net profit declared by the assessee from business in the tune of ` 1,52,285/-.

Citation :
Md. Saud Shahid, 3950, Gali Khankhana, Urdu Bazar, Jama Masjid, Delhi – 110 006 (PAN: BIHPS 8913A) (Appellant) Vs. ITO, Ward-30(1),New Delhi (Respondent)

Daily Limit Reached