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2017 (2) TMI 907 - AT - Income TaxEstimation of net profit - rejection of books accounts - Held that:- Books of accounts of the assessee are audited and no particular defects were pointed out by the Ld. assessing officer, which is patent and glaring. In fact, he has also sustained the addition of ₹ 1 lakh for the reason that assessee has not been able to produce the stock register for diamond and stones and other minor shortcomings as mentioned in his order. The Ld. departmental representative could not point out any infirmity in the order of the Ld. Ld. 1st appellate authority. Therefore, we confirm the finding of the Ld. CIT (A) in deleting the addition on account of rejection of the books of accounts by the Ld. and assessing officer and estimating the net profit. - Decided against revenue. Addition on account of the sundry creditors - Held that:- CIT(A) deleted the addition when the assessee has submitted the confirmation of the sundry creditors, which were duly submitted before the Ld. assessing officer during the assessment proceedings and further submitting the copies of invoices and bills for purchase from the creditors to prove the genuineness of the transactions. The assessee also produced confirmation for payments made to some of the creditors and legal notices issued by the some of the sundry creditors towards outstanding amounts and therefore there was no cessation of any liability and nothing has been written off in the books of accounts. The Ld. departmental representative could not point out any infirmity in the order of the first appellate authority in deleting the above addition. Therefore we confirm the order of the Ld. at first appellate authority in deleting the addition on account of the sundry creditors. Addition on account of unaccounted sales - Held that:- CIT appeal has deleted the addition because the difference in the account has arisen due to the one transaction of 5.820 grms of the gold of ₹ 3893850/- which is wrongly shown by the party as sales instead of being accounted for issue of finished job material. For this reason, the confirmation from the supplier was also submitted along with the copy of the challan and receipt vouchers as well as the labour bill for job done which had been duly forwarded to the AO during the remand proceedings AO has not made any adverse comment on the basis of any independent enquiry verification in this regard. The assessing officer has rejected the confirmation stating that it is an afterthought. The Ld. departmental representative could not point out any infirmity in the order of the Ld. CIT appeal who has deleted the above addition on the basis of the confirmation and no other adverse material brought on record by the Ld. Assessing officer. In view of this we do not find any infirmity in the order of the Ld. CIT appeal in deleting the addition. Addition on account of unaccounted purchases - Held that:- As the opening stock is supported by the books of accounts and stock register which are been produced and examine by the Ld. assessing officer which has not been controlled by the Ld. assessing officer either in the assessment order or in the remand reports. No infirmity could be pointed out by the Ld. departmental representative in the order of the Ld. first appellate authority in deleting the above addition.
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