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2015 (9) TMI 1180 - AT - Income TaxAddition on account of suppressed sale - CIT(A) deleted the addition holding that books of accounts maintained in computerized environment were accurate and reliable - Held that:- We find that the Assessing Officer had proceeded to estimate this suppressed sales on the ground that the gross profit was negative during the months of October, 2004 to October, 2005 and the Assessing Officer adopted gross profit rate of 6.73%. This approach of the Assessing Officer is totally erroneous and cannot be accepted for the reason that the daily sales statement prepared by the assessee cannot be rejected. In this nature of business, the daily sales statement prepared at each shop is of paramount importance and cannot be simply brushed aside without assigning any reasons. Furthermore, in this kind of business the purchases are fully verifiable and Excise Department of the State Govt. has full control over the quantity of purchase and sales simply because the gross profit returned in certain months is lower than the average profit declared by the assessee, cannot be sole ground to estimate the suppressed sales. The Assessing Officer had also not brought on record any comparable instance to prove that the profit declared by the assessee were wrong. It is trite law that no addition can be made on mere surmises and conjectures. Thus, we do not find any infirmity with the reasoning adopted by the learned CIT(A), nor any evidence was brought on record in rebuttal of the conclusion drawn by the CIT(A). In these circumstances, we hold that the order of CIT(A) is well reasoned and therefore the same is hereby sustained. Accordingly, grounds of appeal filed by the Revenue are dismissed. - Decided in favour of assessee.
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