ACIT, CC- 1(2), Kolkata, Kolkata V. Inland World Logistics Pvt. Ltd., , Kolkata

ITSSA 56/KOL/2017

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 4790 (ITAT-KOLKATA)
• Duration Of Justice: 1 year(s) 7 month(s) 12 day(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 15-02-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 31-01-2019
• Assessment Year: 2009-2010
• Appeal Filed On: 03-07-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: B C JAIN; RAKESH JAIN
• Keywords: Rejection of books of accounts; Search and seizure; Opportunity of being heard; Bad and doubtful debts; Revised return
• Section: 68; 145; 132; 144; 143(3); 153A; 143(1)

Judgement Text

1 IT(SS)A NOS.56-62/KOL/2017 M/S. INLAND WORLD LOGISTICS PVT. LTD. AYS- 2009-10 TO 2015-16 IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCH, B AT KOLKATA () . . , . , ) [BEFORE SHRI A. T. VARKEY, JM & DR. A. L. SAINI, A M] IT(SS)A. NOS. 56-62/KOL/2017 ASSESSMENT YEARS: 2009-10 TO 2015-16 ACIT, CC 1(2), KOLKATA VS. M/S. INLAND WORLD LOGI STICS PVT. LTD. (PAN: AAACI 5607 C APPELLANT RESPONDENT DATE OF HEARING 31.01.2019 DATE OF PRONOUNCEMENT 15.02.2019 FOR THE APPELLANT SHRI A.K. SINGH, CIT, DR FOR THE RESPONDENT SHRI B.C. JAIN & SHRI RAKESH JA IN, FCA ORDER PER SHRI A.T.VARKEY, JM THESE ARE REVENUES APPEAL AGAINST THE ORDER OF THE CIT(A) 20, KOLKATA DATED 27.04.2017 FOR ASSESSMENT YEARS 2009-10 TO 2015-16. 2. AT THE OUTSET ITSELF, WE NOTE THAT THIS MATTER W AS FIXED FOR HEARING ON 29.01.2019 WHEREIN WE UNDERSTOOD THAT THE LD. CIT(A) HAS GIVEN RELIEF TO THE ASSESSEE ON THE GROUND THAT SINCE THESE ARE ADDITIONS BASED ON SECTION 153 A PROCEEDING AFTER (SEARCH AND SEIZURE) AND SINCE THERE IS NO INCRIMINATING MATERIALS UN-EA RTHED DURING SEARCH WARRANTING ANY ADDITION QUA THESE ASSESSMENT YEARS [EXCEPT THAT OF A.Y. 2014-15 AND 2015-16, SINCE THESE WERE ABATED PROCEEDINGS]. SINCE THIS WAS MAIN REASO N FOR THE LD. CIT(A) TO DECIDE AS TO THE ASSESSMENT YEARS 2009-10 TO 2013-14 THAT IN 153A PR OCEEDING, WHEN THE ASSESSMENT WAS NOT PENDING FOR THESE YEARS BEFORE THE AO ON THE DA TE OF SEARCH, THERE BEING NO INCRIMINATING MATERIALS UNEARTHED DURING SEARCH QUA THESE ASSESSMENT YEARS, THE AO COULD HAVE ONLY REITERATED THE RETURN FILED / ASSESSMENT MADE UNDER 143(1) / 143(3) OF THE ACT. IN THE LIGHT OF THE AFORESAID FACTS, WE REQUESTED THE LD. CIT DR TO CAREFULLY GO THROUGH THE ASSESSMENT ORDERS QUA THOSE RESPECTIVE ASSESSMENT Y EARS TO FIND OUT AS TO WHETHER THE AO HAS MADE ANY ADDITION WITH THE AID OF ANY INCRIMINA TING MATERIALS UNEARTHED DURING SEARCH QUA THOSE ASSESSMENT YEARS AND FIXED THE APPEAL ON 31.01.2019. 2 IT(SS)A NOS.56-62/KOL/2017 M/S. INLAND WORLD LOGISTICS PVT. LTD. AYS- 2009-10 TO 2015-16 3. WITH THE AFORESAID BACKGROUND, ON 31.01.2019 W E ASKED THE LD. CIT DR AS TO WHETHER THE ASSESSMENT YEARS 2009-10 TO 2013-14 WAS PENDING BEFORE THE AO ON THE DATE OF SEARCH WHICH HE ANSWERED AS NOT PENDING BEFORE T HE AO ON THE DATE OF SEARCH. ON OUR NEXT QUERY AS TO WHETHER THE ASSESSING OFFICER TOOK THE AID OF ANY INCRIMINATING MATERIALS TO MAKE ANY ADDITIONS/DISALLOWANCES, THE LD. CIT-DR FAIRLY ADMITS THAT THERE WERE NO INCRIMINATING MATERIALS THE ASSESSING OFFICER REFER RED IN HIS ORDER TO MAKE THE ADDITIONS/DISALLOWANCES. IN THIS BACKGROUND, WE AFT ER HAVING CAREFULLY EXAMINED EACH ASSESSMENT ORDERS FROM ASSESSMENT YEAR 2009-10 TO 2 013-14 AND TAKING NOTE THAT THESE ASSESSMENT YEARS WERE NOT PENDING BEFORE THE ASSESS ING OFFICER ON THE DATE OF SEARCH, SO WE CONCUR WITH LD CIT(A) THAT THESE ASSESSMENT YEAR S WERE UNABATED ASSESSMENTS AND THEREFORE THE LD. CIT(A) WAS CORRECT TO HOLD THAT A DDITIONS/DISALLOWANCES CANNOT BE MADE WITHOUT THE AID OF ANY INCRIMINATING MATERIALS UNEA RTHED DURING SEARCH QUA THESE ASSESSMENT YEARS. THEREFORE, IN FURTHERANCE TO SECT ION 153A PROCEEDINGS, THE AO HAS TO REITERATE THE RETURNED INCOME / INCOME INTIMATED UN DER 143(1) / SCRUTINY ASSESSMENT MADE UNDER 143(3) / 144OF THE ACT / REASSESSMENT DONE UN DER 147. THEREFORE THE LD. CIT(A) HAS RIGHTLY ORDERED DELETION OF THE ADDITION MADE BY TH E AO U/S 153A FOR ASSESSMENT YEARS 2009-10 TO 2013-14 RELYING UPON THE ORDERS OF THE H ONBLE DELHI HIGH COURT IN KABUL CHAWLA, HONBLE KOLKATA HIGH COURT IN VEERPRABHU MA RKETING LTD. AND HONBLE DELHI HIGH COURT IN KURELE PAPER MILLS PVT. LTD. AS IN AC CORDANCE TO LAW AND DOES NOT REQUIRE ANY INTERFERENCE FROM OUR PART. WE NOTE THAT THE HO NBLE DELHI HIGH COURT IN THE CASE KABUL CHAWLA HAS HELD AS UNDER: SO, SINCE BOTH THE AYS BEFORE US WERE NOT PENDING S O WITHOUT INCRIMINATING MATERIALS UNEARTHED DURING SEARCH, NO ADDITION CAN BE MADE AS HELD BY HONBLE DELHI HIGH COURT IN KABUL CHAWLA (SUPRA) WHEREIN THEIR LORDSHIPS HEL D AS UNDER: SUMMARY OF LEGAL POSITION 37. ON A CONSPECTUS OF SECTION 153A(1) OF THE ACT, READ WITH PROVISOS THERETO, AND IN THE LIGHT OF THE LAW EXPLAINED IN THE AFOREMENTIONED DE CISIONS, THE LEGAL POSITION THAT EMERGES IS AS UNDER: I. ONCE A SEARCH TAKES PLACE UNDER SECTION 132 OF THE ACT, NOTICE UNDER SECTION 153 A(1) WILL HAVE TO BE MANDATORILY ISSUED TO THE PERSON SEARCHE D REQUIRING HIM TO FILE RETURNS FOR SIX AYS IMMEDIATELY PRECEDING THE PREVIOUS YEAR RELEVANT TO THE AY IN WHICH THE SEARCH TAKES PLACE. II. ASSESSMENTS AND REASSESSMENTS PENDING ON THE DATE O F THE SEARCH SHALL ABATE. THE TOTAL INCOME FOR SUCH AYS WILL HAVE TO BE COMPUTED BY THE AOS AS A FRESH EXERCISE. III. THE AO WILL EXERCISE NORMAL ASSESSMENT POWERS IN RE SPECT OF THE SIX YEARS PREVIOUS TO THE RELEVANT AY IN WHICH THE SEARCH TAKES PLACE. THE AO HAS THE POWER TO ASSESS AND REASSESS THE TOTAL INCOME OF THE AFOREMENTIONED SIX YEARS IN S EPARATE WILL BE ONLY ONE ASSESSMENT ORDER IN 3 IT(SS)A NOS.56-62/KOL/2017 M/S. INLAND WORLD LOGISTICS PVT. LTD. AYS- 2009-10 TO 2015-16 RESPECT OF EACH OF THE SIX AYS IN WHICH BOTH THE D ISCLOSED AND THE UNDISCLOSED INCOME WOULD BE BROUGHT TO TAX. IV. ALTHOUGH SECTION 153 A DOES NOT SAY THAT ADDITIONS SHOULD BE STRICTLY MADE ON THE BASIS OF EVIDENCE FOUND IN THE COURSE OF THE SEARCH, OR OTHE R POST-SEARCH MATERIAL OR INFORMATION AVAILABLE WITH THE AO WHICH CAN BE RELATED TO THE E VIDENCE FOUND, IT DOES NOT MEAN THAT THE ASSESSMENT CAN BE ARBITRARY OR MADE WITHOUT ANY RE LEVANCE OR NEXUS WITH THE SEIZED MATERIAL. OBVIOUSLY AN ASSESSMENT HAS TO BE MADE UNDER THIS S ECTION ONLY ON THE BASIS OF SEIZED MATERIAL. V. IN ABSENCE OF ANY INCRIMINATING MATERIAL, THE COMPL ETED ASSESSMENT CAN BE REITERATED AND THE ABATED ASSESSMENT OR REASSESSMENT CAN BE MADE. THE WORD ASSESS IN SECTION 153 A IS RELATABLE TO ABATED PROCEEDINGS (I.E. THOSE PENDING ON THE DATE OF SEARCH) AND THE WORD REASSESS TO COMPLETED ASSESSMENT PROCEEDINGS. VI. INSOFAR AS PENDING ASSESSMENTS ARE CONCERNED, THE J URISDICTION TO MAKE THE ORIGINAL ASSESSMENT AND THE ASSESSMENT UNDER SECTION 153A MERGES INTO O NE. ONLY ONE ASSESSMENT SHALL BE MADE SEPARATELY FOR EACH AY ON THE BASIS OF THE FINDINGS OF THE SEARCH AND ANY OTHER MATERIAL EXISTING OR BROUGHT ON THE RECORD OF THE AO. VII. COMPLETED ASSESSMENTS CAN BE INTERFERED WITH BY THE AO WHILE MAKING THE ASSESSMENT UNDER SECTION 153 A ONLY ON THE BASIS OF SOME INCRIMINATI NG MATERIAL UNEARTHED DURING THE COURSE OF PROPERTY DISCOVERED IN THE COURSE OF SEARCH WHICH W ERE NOT PRODUCED OR NOT ALREADY DISCLOSED OR MADE KNOWN IN THE COURSE OF ORIGINAL ASSESSMENT. HONBLE KOLKATA HIGH COURT IN THE CASE OF VEERPRABH U MARKETING LTD. HAS HELD AS UNDER: THE HON'BLE JURISDICTIONAL CALCUTTA HIGH COURT IN I TA NO. 661 OF 2008 COMMISSIONER OF INCOME TAX VS.VEERPRABHU MARKETING LTD. HAS ALSO HELD AS UNDER: WE AGREE WITH THE VIEW EXPRESSED BY THE KARNATAKA HIGH COURT THAT INCRIMINATING MATERIAL IS PRE-REQUISITE BEFORE POWER COULD HAVE BEEN EXERCISE D U/S 153(C) R.W SECTION 153(A). IN THE CASE BEFORE US, THE AO HAS MADE A DISALLOWANCE OF T HE EXPENDITURE, WHICH WAS HELD DISCLOSED, FOR ONE REASON OR THE OTHER, BUT SUCH DISALLOWANCES MADE BY THE AO WERE UPHELD BY THE LD.CIT(A) BUT THE LD. TRIBUNAL DELETED THESE DISALL OWANCE. WE FIND NO INFIRMITY IN THE AFORESAID ACT OF THE LD. TRIBUNAL. THE APPEAL IS, T HEREFORE, DISMISSED. HONBLE DELHI HIGH COURT IN THE CASE OF KURELE PAPE R MILLS PVT. LTD. HAS HELD AS UNDER: IN A SIMILAR CASE M/S. KURELE PAPER MILLS PVT. LTD. ADDITION WAS MADE BY THE AO (IN SEC. 153A PROCEEDINGS) WITHOUT INCRIMINATING MATERIAL UN EARTHED DURING SEARCH, THE SHARE CAPITAL RECEIVED BY THE ASSESSEE U/S. 68 OF THE AC T WAS DELETED BY THE TRIBUNAL, WHICH ORDER HAS BEEN UPHELD BY HONBLE DELHI HIGH COURT I N PR. CIT VS. KURELE PAPER MILLS PVT. LTD. (2016) 380 ITR 571 (DEL) WHICH DECISION H AS BEEN UPHELD BY HONBLE SUPREME COURT (2016) 380 ITR (ST.) 69-ED. THEREFORE, IN THE LIGHT OF THE AFORESAID ORDER OF T HE HONBLE HIGH COURTS, WE NOTE THAT THE LD. CIT(A) HAS ORDERED DELETION BY THE ADDITION MAD E BY THE AO IS IN ACCORDANCE TO LAW AND THEREFORE, THE ORDER OF THE LD. CIT(A) IS CONFI RMED AND THE APPEAL OF THE REVENUE FROM 2009-10 TO 2013-14 STANDS DISMISSED. 4 IT(SS)A NOS.56-62/KOL/2017 M/S. INLAND WORLD LOGISTICS PVT. LTD. AYS- 2009-10 TO 2015-16 5. IN RESPECT OF IT(SS)A NOS. 61/KOL/2017 AND 62/KO L/2017 FOR ASSESSMENT YEARS 2014-15 & 2015-16, WE NOTE THAT THE ASSESSEE IS ENG AGED IN THE BUSINESS OF TRANSPORT OF GOODS AND THE AO NOTICED THAT ASSESSEE IS THE ONE O F THE LOGISTIC PROVIDERS IN EASTERN PART OF INDIA HAVING OPERATIONS SPREAD ACROSS LENGTH AND BR EADTH OF THE COUNTRY. THE AO NOTICED THAT BESIDES LOGISTIC OPERATIONS THE ASSESSEE GROUP HAS FORAYS IN OTHER COMMERCIAL VENTURES LIKE TEA, SEZ OF GOLD MANUFACTURING, POWER, CEMENT ETC. HOWEVER, THE AO TOOK NOTE OF THE FACT THAT MANY OF THIS OTHER VENTURES WERE NOT PART OF THE SEARCH OPERATIONS WHICH MEANS THE SEARCH OPERATIONS WAS CONFINED TO TRANSPORT/LOGISTI C OPERATIONS WING OF THE ASSESSEE. THE AO NOTICED THAT AFTER THE SEARCH, THE ASSESSEE COMP ANY FOR A.Y. 2015-16 HAD MADE DISCLOSURE OF RS.7.82 CRORES AND FOR OTHER SISTER C ONCERN, M/S. INLAND POWER LTD. 10.85 CRORES; AND M/S. INLAND AUTOMATE PVT. LTD. 6.33 CRO RES; THUS A TOTAL OF RS.25 CRORES HAS BEEN DISCLOSED FOR A.Y. 2015-16. HOWEVER, THE AO NOTED T HAT WHEN THE RETURN OF THE ASSESSEE WAS FILED POST SEARCH, THE PROFIT WAS ONLY TO THE T UNE OF RS. 13,03,65,534/-. THE AO TOOK NOTE OF THE FACT THAT THE TOTAL INCOME AS PER RETUR N FILED U/S 153A OR REVISED RETURN WAS LOWER FOR ALL THE YEARS EXCEPT THAT OF ASSESSMENT YEAR 20 11-12. NOW, ASSESSMENT YEAR 2011-12 IS NOT RELEVANT FOR ADJUDICATING THESE APPEALS. ACCORD ING TO THE AO, THE DISCLOSURE MADE BY THE ASSESSEE HAS BEEN NEGATED BY INSERTING ADDITIONAL H EADS OF EXPENSES FEATURING FOR THE FIRST TIME IN THE FORM OF BAD DEBTS DAMAGES ETC. THESE NE W CLAIMS OF ASSESSEE WERE ALL QUESTIONED BY THE AO DURING 153A PROCEEDINGS AND EV EN THOUGH THE ASSESSEE GAVE EXPLANATION TO THE QUERIES BUT THESE REPLIES OF ASS ESSEE WERE NOT ACCEPTABLE FOR THE ASSESSING OFFICER. SO HE COMPARED THE ASSESSEES INCOME TO TH AT OF A COMPANY CALLED M/S VRL LOGISTIC WHICH ACCORDING TO THE AO CATERS TO THE SA ME SEGMENT OF ACTIVITIES AS THAT OF THE ASSESSEE AND THEREAFTER THE ASSESSING OFFICER REPRO DUCED THE PERFORMANCE OF THE M/S VRL LOGISTIC AT PAGE 16 OF HIS ORDER AND THEN ESTIMATED THE RATE OF PROFIT AT 6.54 PERCENTAGE AND APPLIED THE SAME ON THE ASSESSEES OPERATIVE PERFOR MANCE WHICH RESULTED IN AN INCOME OF RS. 45,98,85,447/- (INTEREST INCOME OF RS. 39,04,27 0/- INCLUDED) FOR A.Y. 2014-15. LIKEWISE FOR ASSESSMENT YEAR 2015-16, THE TOTAL INCOME WAS C ALCULATED AT RS. 58,58,70,330/- (INTEREST INCOME PLUS DISCLOSED NON-OPERATIVE INCOME ALSO INC LUDED). AGGRIEVED THE ASSESSEE PREFERRED AN APPEAL BEFORE THE LD. CIT(A) WHO WAS P LEASED TO DELETE THE SAME. AGGRIEVED THE REVENUE IS BEFORE US. 5 IT(SS)A NOS.56-62/KOL/2017 M/S. INLAND WORLD LOGISTICS PVT. LTD. AYS- 2009-10 TO 2015-16 6. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE R ECORD. WE NOTE THAT A SEARCH AND SEIZURE OPERATION WAS CONDUCTED AGAINST THE ASSESSE E ON 17.03.2015 IN THE CASE OF INLAND GROUP. ASSESSEE IS ENGAGED IN THE BUSINESS OF LOGIS TICS AND TRANSPORTATION OF GOODS MACHINERY UTILIZING THEIR OWN TRUCKS AND ALSO THAT OF HIRED TRUCKS. WE NOTE THAT THE ASSESSMENT YEAR 2014-15 WAS PENDING ON THE DATE OF SEARCH, SO A.Y. 2014-15 IS AN ABATED ASSESSMENT AND A.Y. 2015-16 IS THE YEAR WHEN SEARCH TOOK PLACE, THEREFORE SCRUTINY UNDER 143(3) WAS CARRIED OUT IN RESPECT OF ASSESSMENT YEA R 2015-16. WE NOTE THAT WHILE DOING SECTION 153A ASSESSMENT IN THE ABATED PROCEEDINGS, THE AO HAS NO RESTRICTIONS AS IN THE CASE OF UNABATED PROCEEDINGS ARE CONCERNED. WE NOTE THAT IN THESE TWO ASSESSMENT YEARS, THE ASSESSING OFFICER HAS ESTIMATED THE INCOME BY COMPA RING THE RESULTS OF ASSESSEE WITH THAT OF ANOTHER COMPANY M/S VRL LOGISTICS. HOWEVER, BEFO RE DOING THAT THE AO HAS NOWHERE IN BOTH THE ASSESSMENT ORDERS HAVE REJECTED THE BOOKS OF ACCOUNTS AND HAS NOT CARRIED OUT THE EXERCISE AS PRESCRIBED U/S 145(3) OF THE ACT. HOWEV ER, THE AO HAS ESTIMATED INCOME OF THE ASSESSEE BY COMPARING THE NET PROFIT BY BRINGING IN THE RESULTS OF A COMPANY, CALLED M/S. VRL LOGISTICS AND HAS ADOPTED A NET PROFIT OF 6.54 PERCENTAGE AND ESTIMATED THE INCOME OF THE ASSESSEE. IT WAS BROUGHT TO OUR NOTICE THAT THE AO NEVER PUT THE ASSESSEE ON NOTICE AS TO HIS DESIRE TO BRING THE COMPARABLE COMPANY CALLED M/S. VRL LOGISTICS AND TO USE IT AS A COMPARABLE CASE FOR ESTIMATING THE INCOME OF ASSES SEE. SO ACCORDING TO THE LD. AR, THE ASSESSEE DID NOT GET ANY OPPORTUNITY TO CHALLENGE T HE ACTION OF THE ASSESSING OFFICER TO TAKE THE CASE OF M/S VRL LOGISTICS AS COMPARABLE AND ALS O THE AO DID NOT GIVE ANY OPPORTUNITY TO THE ASSESSEE TO BRING ITS OWN COMPARABLES. WE NO TE THAT THE LD. DR COULD NOT CONTROVERT THESE FACTS POINTED OUT BY THE LD. AR CHALLENGING T HE ACTION OF ASSESSING OFFICER IN RESPECT OF BRINGING M/S VRL LOGISTICS AS COMPARABLE AND NOT GIVING OPPORTUNITY TO ASSESSEE TO BRING ITS OWN COMPARABLE TO JUSTIFY THE NET PROFIT/ GROSS PROFIT OF THE ASSESSEE COMPANY. IN THE LIGHT OF THE AFORESAID FACTS AS DISCUSSED, THE AFORESAID ACTION OF THE AO CANNOT BE COUNTENANCED BY US. IF THE AO FOUND FAULT WITH THE BOOKS WHICH ASSESSEE HAS REGULARLY MAINTAINED, AND WHICH ARE ADMITTEDLY AUDITED, AND I N CASE IF THE AO WAS OF THE OPINION THAT THE ASSESSEE HAS NOT REGULARLY FOLLOWED THE METHOD OF ACCOUNTING AS MENTIONED U/S 145(1) OF THE ACT OR THAT THE ASSESSEE HAS NOT COMPUTED THE I NCOME IN ACCORDANCE WITH ACCOUNTING STANDARD NOTIFIED U/S 145(2) AND IF THE AO WAS NOT SATISFIED WITH THE CORRECTNESS OF THE ACCOUNTS OF THE ASSESSEE, THEN AO WAS AT LIBERTY TO MAKE AN ASSESSMENT IN THE MANNER PROVIDED U/S 144 WHICH IS THE BEST JUDGEMENT ASSESS MENT. HOWEVER, BEFORE DOING SO, HE HAS 6 IT(SS)A NOS.56-62/KOL/2017 M/S. INLAND WORLD LOGISTICS PVT. LTD. AYS- 2009-10 TO 2015-16 TO GRANT AN OPPORTUNITY OF BEING HEARD AS PRESCRIBE D U/S 144 OF THE ACT. WITHOUT DOING SO, THE AO OUGHT NOT TO HAVE GONE TO ESTIMATE THE NET P ROFIT OF THE ASSESSEE AND MOREOVER BEFORE BRINGING IN ANY COMPARABLE LIKE THAT OF M/S VRL LOG ISTICS, THE ASSESSEE MUST HAVE BEEN GIVEN NOTICE CALLING UPON THE ASSESSEES OBJECTION, IF ANY, AND ALSO GIVEN OPPORTUNITY TO THE ASSESSEE TO BRING ANY COMPARABLE CASES IF IT DESIRE S SO AND THEN ONLY A.O TO HAVE CARRIED OUT THE EXERCISE OF ESTIMATION IN A REASONABLE AND JUST MANNER. FAILURE TO DO SO, VITIATES THE IMPUGNED ORDER. WE, THEREFORE, SET ASIDE THE ORDER OF THE LD. CIT(A) AND ESTIMATION MADE BY THE A.O AND REMAND THE MATTER BACK TO THE AO FOR FIRST TO DECIDE WHETHER TO REJECT OR NOT THE BOOKS OF ACCOUNTS MAINTAINED BY THE ASSESSEE IN THE LIGHT OF SECTION 145 AND JUDICIAL PRECEDENCE IN RESPECT OF THE SAME IN ACCORDANCE TO LAW. THEREAFTER, IN CASE, A.O REJECTS THE BOOKS OF ACCOUNTS, HE SHOULD RECORD REASONS FOR DOI NG SO AND THEREAFTER, IF THE AO INTENDS TO BRING ANY COMPARABLE CASES SIMILAR/IDENTICAL TO THA T OF THE ASSESSEE, THEN THE ASSESSEE HAS TO BE PUT ON NOTICE AS THAT OF HIS INTENDED COMPARABLE S AND THEREAFTER THE ASSESSEE SHOULD BE GIVEN OPPORTUNITY TO CHALLENGE A.OS PROPOSED COMP ARABLE CASES AND ALSO ASSESSEE TO BE GIVEN OPPORTUNITY TO BRING ITS OWN COMPARABLES AND THEREAFTER AO TO FINALIZE THE COMPARABLES BY REASONS RECORDED AND THEN ESTIMATE T HE INCOME OF THE ASSESSEE. NEEDLESS TO SAY, SUFFICIENT OPPORTUNITY SHOULD BE GIVEN TO THE ASSESSEE BEFORE THE ASSESSMENT IS FRAMED AFRESH. 7. IN THE RESULT, APPEALS OF REVENUE ARE DISMISSED FOR A.YS 2009-10 TO A.Y 2013-14; APPEALS OF REVENUE FOR A.YS 2014-15 AND A.Y 2015-16 ARE ALLOWED FOR STATISTICAL PURPOSE. ORDER IS PRONOUNCED IN THE OPEN COURT ON 15TH FE BRUARY, 2019 SD/- SD/- (DR. A. L. SAINI) (ABY T. VARKEY) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 15TH FEBRUARY, 2019 BISWAJIT (SR.P.S.) 7 IT(SS)A NOS.56-62/KOL/2017 M/S. INLAND WORLD LOGISTICS PVT. LTD. AYS- 2009-10 TO 2015-16 COPY OF THE ORDER FORWARDED TO: 1 . APPELLANT ACIT, CC-1(2), 110, SHANTIPALLY, 3 RD FLOOR, KOLKATA 700 107. 2 RESPONDENT M/S. INLAND WORLD LOGISTICS PVT. LTD., P-221/2, STRAND BANK ROAD, KOLKATA 700 001. 3 . THE CIT(A), 4. 5. CIT , DR, / TRUE COPY, BY ORDER, ASSISTANT REGISTRAR/H.O.O ITAT, KOLKATA