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2021 (3) TMI 1097 - ITAT DELHIEstimating income shown u/s 44AD as supported by return filed under VAT - estimate of the CIT(A) being without any material, ignoring the correct position of the case i.e. neither books of accounts are kept nor auditing was done and returns were even farzi for taking loan from bank - addition is sustained by the ld. CIT(A) based on the findings of the ld. CIT(A) in assessee's own case for assessment year 2010-11 [2018 (9) TMI 1759 - ITAT DELHI] wherein the profit @ 5% on the turnover was estimated - HELD THAT:- In para No. 8 the co-ordinate bench held that assessee should be given an opportunity to substantiate evidence to the satisfaction of the AO regarding the turnover and expenses with respect to the profit and loss account and the balance sheet as it as stated that those were farzi version of accounts. Considering the totality of the facts of the case the matter was restored back to the file of the Assessing Officer with a direction to grant one final opportunity to the assessee to substantiate his case directing the assessee to produce the books of accounts and audit report failing which the Assessing Officer shall pass an appropriate order as per law. In the present case the addition is also based on the order of the CIT (Appeals) for assessment year 2010-11. This order has now been restored back to the ld. AO for that year. When additions are confirmed on the basis of the order of ld. CIT(A) for earlier years which has already been sent back to the ld. AO for fresh decision, there is no reason that why this year should also not be restored back to the file of the ld. AO for fresh assessment. SO, we also set aside this appeal with similar direction to the file of the Assessing Officer. Rejection of books of accounts - Addition of 5% of gross sales - HELD THAT:- In the return of income the assessee has filled up the figures only with some of the items, therefore, it is apparent that no books of accounts were maintained. During the assessment proceedings, the Assessing Officer did not dispute the turnover or the expenses as well as the cash on hand and amount of debtors. The only addition was with respect to the discrepancy in the opening stock. In assessment year 2010-11 AO rejected the books of accounts and made the addition whereas in the impugned year he has not disturbed the trading results of the assessee which has turnover of only ₹ 9,45,132/-. The Assessing Officer has merely added the difference in the opening stock as well as the closing stock. The stock of the assessee as on 1.04.2009 was ₹ 2,01,23,560/-. The stock as on 31.03.2009 was shown at only ₹ 4,10,130/-. Therefore, the assessee has shown excess opening stock of ₹ 1,97,13,430/-. The Assessing Officer also did not care to consider that whether the assessee is having the above stock as actual stock with the assessee and if so what is the source of investment for the above stock. The Assessing Officer has not even examined the source of stock nor was such stock found during the course of survey on 17.09.2013 and 29.09.2013. No purchase vouchers or details were also found during the course of survey. In view of this, we do not find any infirmity in the order of the ld. CIT (Appeals) and thus, the solitary ground of appeal of the ld. Assessing Officer is dismissed.
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