TMI Blog2009 (12) TMI 565X X X X Extracts X X X X X X X X Extracts X X X X ..... that the books of account of the assessee had to be rejected since there is no material on record, i.e., purchase vouchers to support the entries made in the books of account about the payments made to the sellers. Even the names and addresses of the sellers had not been entered whereby such entries could have been verified even in the absence of purchase vouchers. No proper stock registers were maintained. Hence the books of account were rightly rejected. The question as to what should be the percentage of gross profit is a pure question of fact and not a question of law. - Decided in favor of revenue. - 59 of 2007 - - - Dated:- 15-12-2009 - Mr.Deepak Gupta, Mr.V.K.Ahuja, JJ. For the appellant: Mr.M.M.Khanna, Senior Advocate with M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , the gross profit rate was 33.04%. On appeal the Commissioner of Income Tax (Appeals) deleted the addition on the ground that the Assessing Officer had not pointed out any specific defects or discrepancies in the books of account. He accepted the plea of the assessee and deleted the addition of Rs.4,13,015/-. On further appeal to the ITAT, the Tribunal relying upon the judgment of the Apex Court in M/s.Kachwala Gems Vs. JCIT 2007 (288) ITR 10 held that in view of the fact that the assesse could not produce the purchase vouchers and details of the vendees and in the absence of stock register, the Assessing Officer was well within his right to reject the books of account. In Kachwala Gems' case, the Apex Court held that where the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Assessing Officer should not have based the profit on the percentage of the previous year. Following the law laid down in kachwala Gems, it is apparent that the books of account of the assessee had to be rejected since there is no material on record, i.e., purchase vouchers to support the entries made in the books of account about the payments made to the sellers. Even the names and addresses of the sellers had not been entered whereby such entries could have been verified even in the absence of purchase vouchers. No proper stock registers were maintained. Hence the books of account were rightly rejected. The question as to what should be the percentage of gross profit is a pure question of fact and not a question of law. As held by the A ..... X X X X Extracts X X X X X X X X Extracts X X X X
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