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2013 (9) TMI 765 - HC - Income TaxRejection of books of accounts u/s 145(3) of the Income Tax Act - Rejected the books of accounts and made the addition on estimate basis mainly for the reason that during the assessment year under consideration, the assessee has shown low sale/profit – Held that:- Books of accounts were properly audited, checked and no specific error was detected. Regarding non-compliance to notices sent to various parties under section 133(6), the assessee explained that the parties might have not received the notice or they were not experts in keeping the accounts in the manner as the A.O. likes. Sales were fully verifiable as the consignments had been dispatched along with forms as required under Sales Tax Act, and copies of challans, mandi tax vouchers, transport bilties etc. were also made available to the A.O. The assessee cannot be penalized specially when its books of accounts were properly audited and relevant vouchers were made available. The assessee cannot be held responsible for not submitting the proper reply by the buyers/commission agents - Profit being low by itself cannot be a ground for rejection of the books of accounts as per the ratio laid down in various judgments – Decided against the Revenue.
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