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2018 (9) TMI 145 - AT - Income TaxRejection of books of accounts - Held that:- We are in agreement with the arguments of Learned A.R. that once the addition has been made after rejection of books of account no further additions can be made relying on the same books of account. However, the Learned A.R. agreed that in respect of agreed addition of ₹ 3,00,000/- and ₹ 3,50,000/- he does not have anything to say GP estimation at higher rate - Held that:- Neither the Assessing Officer nor the ld. CIT(A) has conducted any independent enquiry regarding the same and just on the basis of guess work has observed that assessee is not bringing out full particulars. Even the judicial pronouncements are clear on the facts that in the nature of trade as like assessee, cash memos for day-to-day sales are not required and that a consolidated entry in the cash book along with relevant documents of purchase of liquor are sufficient to prove the genuineness. In this view of the matter, we hold that the ld. CIT(A) was not justified in confirming the rejection of the books of account and adopting the G.P. rate on the higher side and, therefore, we set aside the order of the ld. CIT(A) on this issue and allow grounds No.1 & 2 of the appeal of the assessee.
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