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2022 (8) TMI 1181 - ITAT DELHIRejection of books result - estimation of turnover - gross profit of the assessee has been estimated at 2.98% of the turnover - HELD THAT:- Assessee has been consistently following the trading pattern and its trading results have been accepted by the A.O in prior and subsequent periods. Mere no availability of stock register cannot be sufficient to reject trading results when the audited final accounts and other sources including the VAT data are available to cross verify the trading results including the sales verification. It is not the case of the Revenue that the A.O has not doubted the bonafide of the purchases or sale, nor there is an allegation of any manipulation in purchases or sales. A.O has also accepted the turnover declared by the assessee and also accepted the books of accounts by not pointing out any specific defect therein In our opinion, rejection of trading results in isolation is not proper and the same is erroneous. Further, it is not in dispute that an assessment order was made u/s 143(3) of the Act for the AY 2012-13 and 2015-16 wherein the declared results were accepted, the facts of those Assessment Years are similar that of the year under consideration. As seen that the gross loss during the Assessment Year 2015-16 is 11.32% against the gross loss of 0.41% during the year under consideration which indicates significant increase. Therefore, the action of the A.O in rejecting the trading result is not found to be tenable. Mere none production of stock register particularly when the quantitative details of opening stock, purchase, sales and closing stock is available cannot be ground to reject the declared trading results and the submission is supported by the said judgments. CIT(A) has considered all the above factual aspects and came to a just conclusion in deleting the additions made by the A.O. Therefore, we are of the considered opinion that the order of CIT(A) requires no interference. Accordingly, we dismiss the grounds of Appeal of the Revenue.
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