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2019 (4) TMI 699 - AT - Income TaxAssessments u/s 153A - no incriminating material found during the course of search - HELD THAT:- In the given facts the AY 2009- 10 will come under the category of completed and non abated assessment and the A.O can make additions in such assessments only on the basis of incriminating material found during the course of search. In the case of the assessee as there is no incriminating material found during the course of search A.O could not make any addition on the basis of information called during the course of assessment proceedings and therefore Ld. CIT(A) has rightly held the impugned proceedings u/s 153A r.w.s. 143(3) of the Act as invalid. Rejection of books of accounts - estimation of Gross Profit on sale of gold and silver bullion - HELD THAT:- Books of accounts and stock records are consistently been maintained by the assessee in the similar fashion. Audited reports by the Auditor under the Companies Acts and Income Tax Act are placed on records. No error is pointed out by the Auditors. A.O has made a general observation that the assessee is having huge amount of cash purchases and cash sales but has not placed or referred to any evidence on record to prove that the assessee is indulged into unaccounted sales and purchases. All the expense are vouched. Ld. A.O has merely followed the order of his predecessor of previous years for making the impugned addition. It is well settled principal that before rejecting the book results, discrepancies should be pointed out in the regular books of accounts by the AO. Therefore we are of the considered view that CIT(A) has correctly allowed the assessee’s appeal by holding that the book results should be accepted and that the action of the A.O rejecting books of accounts and making the addition for low Gross Profit on sale of gold bar and sale of silver bar is devoid of any merit and uncalled for. No inconsistency in the finding of Ld. CIT(A) and the same deserves to be confirmed. Accordingly Grounds of the revenue’s appeal for Assessment Year 2012-13 stands dismissed.
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