TMI Blog2014 (8) TMI 67X X X X Extracts X X X X X X X X Extracts X X X X ..... , CIT (DR) ORDER Per Sunil Kumar Yadav: This appeal is preferred by the assessee against the order of the ld. CIT(A), inter alia, on the following grounds:- 1. Because on facts and in circumstances of the case, ld. CIT(A) has erred in confirming the calculation of enhanced/additional sale without allowing the claim of the assessee. 2. Because on facts and in circumstances of the case, ld. CIT(A) has erred in holding that gross profit rate of 48% to be applied to job work receipts and 25% on sales outside books. 3. Because on facts and in circumstances of the case, ed. A o has erred in confirming addition on account of undisclosed capital employed at ₹ 500000.00. 4. Because on facts and in circumstances of the case, ed. Cit (a) has erred in going into irrelevant considerations in confirming additions and his observations/conclusions are not based on sound reasoning and deserves to be struck down and entire claims of the assessee be allowed. 5. Because on facts and in circumstances of the case, the assessment order as well as observations of ld. Assessing Officer as well as appeal order by ld. CIT(A) are not completely correct, legally as well as fa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the assessee has not disputed the fact of having done job work totaling to ₹ 6,36,758/-. However, what the assessee had contended was that the CA while auditing the accounts might have forgot the entry of the balance amount as showing 'Bad Debts'. The assessee has neither credited the amount of job work at ₹ 6,36,758/-, nor has claimed bad debts as contended by the assessee. The assessee did not lead any evidence before the AO with respect of the bad debts, nor was it done before the CIT(A). Instead of leading any evidence with respect to the claim of Bad Debts , the Assessee/Ld.AR has blamed the AO for not making enquiries in the matter. I fail to understand as to what further enquiries could have been made by the AO in this regard. The onus of claiming bad-debts, if any, is on the assessee and not the AO. Under these facts and circumstances of the case, unaccounted job work charges amounting to ₹ 2,99,798/- is confirmed. 6. Though the assessee has challenged this addition before us, but during the course of hearing, the ld. counsel for the assessee could not place any evidence to co-relate that the entire job work charges shown were duly reco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from scrutiny of these two books that the total sale of ₹ 91,39,327/- has been made during the financial year relevant to the assessment year 2006-07. This sale was not reflected in the regular books of account of the assessee. The Assessing Officer further observed that all the sales which have been recorded in BK1/2 are being reflected in the ledger BK2/20. This shows that these two books are containing trading activities carried without recording in the regular books of account. The Assessing Officer accordingly made an addition of ₹ 26,63,200/- as net profit, having applied the gross profit rate @ 29.14% on the total sale of ₹ 91,39,327/-. 10. Though the assessee preferred an appeal before the ld. CIT(A), but he could not co-relate the entries found in the seized material and regular books of account maintained by him. In the written submission, the assessee has stated that Assessing Officer should have rejected the result of audit report on the basis of facts that no books of account of the sale of ₹ 39,01,030/- has been seized nor available and taken the net profit as per audit report on the sales of ₹ 91,39,327/-. The written submission fil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... laying cards is made (either accounted or out of books), it would be made to people who deal with these items. It is, therefore, obvious that the assessee has sold goods to his customers and only part of such sale has been recorded and balance has not been recorded in the regular/audited books of account, instead such unaccounted sale has been recorded in BK- 1/2 and BK-2/20. Therefore, it is natural that there would be some common names in the regular books and also in the books impounded. On perusal of the impounded ledger and the ledger accounts (computer printouts), it is seen that most of the customers are common. Even at the cost of repeating, I would say that the onus is on the assessee to lead adequate and credible evidence to buttress his submissions, which he has failed to do. Under these facts andcircumstances, I confirm the unaccounted sales of ₹ 91,39,327/-. As regards computation of G.P. thereupon, it would be dealt with in later paragraphs. 11. Now the assessee has preferred an appeal before the Tribunal, but could not place any evidence on record to justify that the sales made by the assessee, found recorded in the seized material, were already recorded in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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