ITO, NEW DELHI vs. SHRI SANDEEP KUMAR AGGARWAL, NEW DELHI

Per Dr. B. R. R. Kumar, Accountant Member:

1. That the CIT(A) has erred in law and on facts of the case in deleting the addition of Rs.2,90,96,962/-. made on account of low G.P. rate by rejecting the books of accounts.

2. The Ld. CIT(A) has erred in ignoring the fact that the assessee being an exporter was also doing his business on wholesale basis, where the assessee is a wholesale dealer, failure to maintain stock accounts/register would be a substantial defects in the accounts justifying an inference that the account were maintained in a manner from which a true and correct profit were not deductible, as held in the Sandeep Kumar Aggarwal case of Amiya Kumar Roy & Bros. Vs CIT 1994 Tax LR 616 (Cal.)

3. The Ld. CIT(A) has erred in law and on facts of the case in deleting the disallowance of Rs.4,40,990/- made on account of claim of interest exp. attributable to interest free loans and advances.

4. That the CIT(A) has erred in law and on the facts of the case in deleting the l/5lh disallowance of Rs.83,101/- made out of claim of car and scooter maintenance and conveyance expenses.”

Return declaring an income of Rs.10,23,140/- was filed. Original assessment u/s 143(3) was completed u/s 143(3) on 06.07.2011 at an income of Rs.11,06,240/-. Thereafter, order u/s 263 of the I.T. Act, 1961 has been passed by the CIT-IX on 18.02.2014 whereby he has quashed the assessment order dated 06.07.2011 and directed to pass a fresh order keeping in view of the directions contained therein.