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2022 (3) TMI 1359 - HIMACHAL PRADESH HIGH COURTGP estimation - Closing stock estimation - assessee had tried to furnish month wise closing stock and had failed to produce/justify/explain/ substantiate the same during the period of assessment - HELD THAT:- AO had computed month wise and quarter wise trading account for enhancing the gross profit. AO had failed to consider the genuine purchases and sales made by the assessee, which had been duly entered in the books of account. The nature of business carried by the assessee was also not considered by the AO. The assessee was receiving goods throughout the year from different warehouses, through bills or challans. Lump-sum payments were made to the different suppliers throughout the year. All the records, i.e., books of account, sales and purchase vouchers had been fully produced by the assessee - Assessing Officer had, however, prepared month wise trading account and had found negative stock in the books of account of the assessee. Although, the Assessing Officer had not found any unrecorded purchases, but had, in his own way, prepared the trading account for enhancing the gross profit. No sales were found outside the books of account. AO could have made the assessment as per the provisions of the Income Tax Act, 1961. In the subsequent assessment years, the AO had passed the order u/s 143(3) of the Act in respect of the same business activities of the assessee, which gave rise to net profit of 2.53% and 2.99%. The learned Tribunal had, thus, rightly dismissed the appeal filed by the department.
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