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2020 (11) TMI 865 - AT - Income TaxRejection of books of accounts - Profit estimation - enhancement of profit ratio to 25% as against profit ratio declared by the assessee to the tune of 20% - HELD THAT:- The assessee on its part has not filed complete details , nor stock records were filed as well balance sheet were not filed. The authorities below have detailed in their orders about non submission of records by the assessee. The details called for by the Bench has also not been filed for the profits declared in the preceding years and its acceptability by Revenue for those years. It is important to compare profit ratio declared by the assessee in the earlier years and the acceptability of the same by the Department in those years Assessee was directed by the Bench to file complete details of the profit ratios of the preceding years declared by the assessee and its acceptability by Revenue for those years , but the same is not filed before us rather details of succeeding years are filed - we are remitting the matter back to AO for fresh enquiry as to profit declared by the assessee in the earlier three years and its acceptability by Revenue and if the same were accepted by Revenue in those three years and similar business is carried on by the assessee in the impugned ay, then in that situation, the AO is directed to adopt average of the profits for the last three years or the profits declared by the assessee for the impugned ay which ever is higher - in case suppression is detected by AO keeping in view peculiar/specific facts(evidences) and circumstances in the year under consideration, then the onus is on the AO to bring on record profit earned by other persons in the similar businesses, and then based upon the same, the profit of the assessee be computed by Revenue for impugned ay. Thus, the matter is remitted back to the AO for denovo determination of the issue on merits. Additions being made with respect of income from business of ‘PAAN’ alleged to have been carried out by the assessee - assessee has demonstrated before the authorities below that the business of PAAN were carried out by his father and not by the assessee - HELD THAT:- The Revenue is not able to demonstrate with evidence that the assessee was engaged in the business of PAAN also and income from the business of PAAN has not been declared by assessee in the return of income filed by assessee with Revenue. The powers of the ld. CIT(A) are co-terminus with the power of the AO and he could have made detailed enquiry to unravel the truth , but no concrete evidence/findings are brought on record to rebut contentions of the assessee that business of PAAN was carried out by his father from the same shop outlet in Civil Lines, Allahabad and the same has been offered for taxation by his father - since no material/evidence is available on record to prove that business of PAAN was carried out by assessee, we hereby delete the Addition made by the AO on account of business of PAAN which was later confirmed by the CIT(A). - Decided in favour of assessee. Addition with respect to advance discount given by M/s Pepsico in the month of August 2007 to the assessee - HELD THAT:- There is no justification offered by the assessee in not offering to tax the said amount of ₹ 5,00,000/- in ay: 2008-09 - there is no concrete argument backed with any evidence submitted by learned counsel for the assessee as to why the additions upheld by learned CIT(A) be not confirmed by us and under these circumstances we find that there is no justification that the said amount of ₹ 5,00,000/- should not be brought to tax in the hands of the assessee for impugned ay: 2008-09 . Thus we hold that ₹ 5,00,000/- is taxable in the hands of the assessee for the impugned ay: 2008-09 under consideration and hence we confirm this additions as were made AO which were later confirmed by learned CIT(A) , and dismiss these ground of assessee.
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