Nishant Jain Vs ACIT (ITAT Raipur)
ITAT Raipur that where the income of the assessee has been computed by applying a gross profit rate, there is no need to look into the provisions of Section 40A(3) of the Income Tax Act as gross profit (G.P.) rate takes care of expenses otherwise than by way of crossed cheque.
Facts- PCIT passed an order u/s. 263 of the Act, wherein it was, inter alia, observed by him that the A.O while framing the assessment had failed to consider the fact that as the assessee had suppressed/short accounted for machinery and mobilization advance of Rs.1,36,15,941/- in his books of account vis-à-vis “Form 26AS”, therefore, the order passed by him was rendered as erroneous in so far it was prejudicial to the interest of the revenue. Accordingly, the Pr. CIT had, inter alia, based on his aforesaid observation, set-aside the assessment order and restored the same to the file of the A.O with a direction to pass a fresh assessment order after affording reasonable opportunity of being heard to the assessee. Accordingly, the A.O vide his order passed u/s.143(3) r.w.s. 263 of the Act, dated 21.12.2019 determined the income of the assessee at Rs.2,69,52,680/-.
