SAMEER RAJIV KARAMBELKAR,,NASHIK vs. ASSISTANT COMMISSIONER OF INCOME-TAX,, NASHIK

This appeal by the assessee against the order dated 20-01-2017 passed by the Commissioner of Income Tax (Appeals)-1, Nashik [‘CIT(A)’] for assessment year 2013-14.

The assessee raised ground Nos. 1 to 4 challenging the action of CIT(A) in confirming the addition made by the AO by estimating the profit @ 65% of the turnover by rejecting the books of accounts without pointing out any defect in the facts and circumstances of the case.

The ld. AR submits that the assessee is an individual derives income from sale of lands/plots. The AO estimated the gross profit for taking into average of A.Ys. 2012-13 and 2014-15 without examining the books. The assessee made detailed explanation before the AO and referred to such in the paper book. The ld. DR referred to Para No. 5 of the CIT(A) and vehemently argued that the AO rightly adopted the GP by estimation as the assessee reconstituted profit and loss account and balance sheet.

Having heard both the parties and on perusal of the record, we note that as rightly pointed out by the ld. DR that the AO made detailed discussion in respect of the present issue at Page No. 2. It is not disputed that the land transaction as per the AIR information was not appearing in the profit and loss account. It is also not disputed that the assessee furnished a revised return of income and the AO held the profit and loss account and balance sheet was entirely different as compared to original return of income. In such circumstances the ld. AR prayed to remand the issue to the file of AO for its fresh consideration. The ld. DR vehemently opposed the same but however taking into consideration the facts and circumstances of the case and in the interest of justice, we deem it proper to remand the matter to the file of AO for its fresh consideration. The assessee is liberty to file evidences, if any, in support of its claim. Thus, the ground Nos. 1 to 4 raised by the assessee are allowed for statistical purpose.

Ground No. 5 raised by the assessee challenging the action of CIT(A) in confirming the addition made on account of unexplained expenditure u/s. 69C of the Act.

In view of our decision in ground Nos. 1 to 4 in remanding the matter to the file of AO, we leave it to the assessee to raise the issue before the AO for its fresh consideration. Accordingly, ground No. 5 raised by the assessee is allowed for statistical purpose.

In the result, the appeal of assessee is allowed for statistical purpose.