M/S JYOTI ERECTORS PVT LTD.,ALLAHABAD vs. DCIT CIRCLE-2, ALLAHABAD

In the result, the appeal of the assessee is partly allowed

Bench: Sh. Sudhanshu Srivastava & Sh. Nikhil Choudharya.Y. 2016-17 M/S Jyoti Erectors Pvt. Ltd., Vs. Dcit, Near Amar Ujala Press Gt, Road, Circle-2, Allahabad Bamrauli, Allahabad, U.P. Pan:Aaccj0409K (Appellant) (Respondent) Assessee By: Sh. Praveen Godbole, C.A. Revenue By: Sh. A.K. Singh, Sr. Dr Date Of Hearing: 21.10.2024 Date Of Pronouncement: 27.12.2024 O R D E R Per Nikhil Choudhary, A.M.: This Appeal Has Been Filed Against The Order Of The Ld. Cit(A), Allahabad Under Section 250 Of The Income Tax Act, 1961 On 18.02.2020. The Grounds Of Appeal Preferred By The Assessee Were As Under:- “1. That In Any View Of The Matter The Assessment Order Dated 30/12/2018 Framed U/S 143(3) Of The It Act Is Bad Both On The Facts & In Law & Vide Such Order The Income So Determined At Rs. 63,12,477/- In Arbitrary Manner Is Unjustified & Wrong Hence The Declared Income Of Rs. 18,86,600/- On The Basis Of Closed Books Of Accounts Should Have Been Accepted In The Facts & Circumstances Of The Case. 2- That In Any View Of The Matter The Addition Of Rs. 44,25,877/- As Made By The Assessing Officer By Applying A Net Rate Of 7 Percent On Declared Receipt Of Rs. 9,01,78,242/- By Ignoring Closed Books Of Accounts Is Highly Unjustified & Wrong & Also Provisions Of Section 145(3) Of The It Act Has Been Wrongly Invoked. Moreover No Comparable Case Has Been Cited By The Assessing Officer In The Assessment Order For Applying Such Higher Net Profit Rate Nor Past History In Assessee Own Case Was Considered Hence The Addition So Made By The Assessing Officer & Confirmed By Cit(A) Is Highly Unjustified.

u/s 143(3) of the IT Act is bad both on the facts and in law and vide such order the income so determined at Rs. 63,12,477/- in arbitrary manner is unjustified and wrong hence the declared income of Rs. 18,86,600/- on the basis of closed books of accounts should have been accepted