AKM Associates vs ITO

PER C.N. PRASAD, JM,

This appeal filed by the assessee is preferred against the order of the Commissioner of Income Tax (Appeals)/NFAC, Delhi [herein after referred as “CIT(A)”] dated 03.10.2024 for the A.Y. 2022-23 in sustaining the additions made by the AO.

The Ld. Counsel for the assessee at the outset submitted that this is the first year of the business of the assessee and the assessee since could not provide certain documents before the AO at the time of assessment, those documents were furnished before the Ld.CIT(A) as additional evidences which the ld. CIT(A) did not adjudicate on additional evidences furnished by the assessee but sustained the net profit estimated by the AO @2% without adjudicating on the additional evidences furnished. Therefore, the Ld. Counsel for the assessee submitted that the matter may be restored to the file of the AO to examine the additional evidences, to which the Ld. DR has no serious objection.

We have heard the rival arguments and perused the orders of the authorities below. Considering the submissions of the Assessee the additional evidences furnished before us and perusing the orders of the authorities below we find that though the assessee has furnished additional evidences in the course of appeal proceedings which the Ld. CIT(A) all though admitted the additional evidences and called for remand report from the AO and rejoinder from the assessee, did not deal with the additional evidences and simply sustained the estimation of net profit computed by the AO @ 2% without giving any findings on the additional evidences furnished by the assessee.

Therefore, taking the totality of facts and circumstances into consideration and the additional evidences furnished by the assessee, we restore the issue in appeal to the file of the AO who shall examine the evidences and decide the issue afresh and in accordance with law after providing adequate opportunity to the assessee.

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