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TMI Blog2011 (3) TMI 1243X X X X Extracts X X X X X X X X Extracts X X X X ..... ng Officer noticed that the assessee had declared sales of Rs. 2,82,96,274/- against purchases of Rs. 2,77,04,670/- and the closing stock amounted to Rs. 5,89,670/-. The GP shown came to 4.17% and after claiming further expenses of commission, salary, etc., it came down to 0.75%. The sundry creditors shown amounted to Rs. 1,21,08,885/-. The assessee filed a ledger extract of the sundry creditors and sundry debtors as per his books of account. In order to verify the genuineness of the transactions the Assessing Officer called for information from the debtors and creditors under section 133(6) of the Act. In some of the cases the letters were returned unserved with postal remarks such as "not known", "left", etc. In addition to the above veri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s on 31.03.2001 (c) Party confirmation statements (d) Ledger accounts of sundry creditors and sundry debtors with supporting evidence (e) Revised / rectified books of account. In support of the application for admission of additional evidence, it was stated that the revised statements were being submitted because those given during the assessment proceedings were erroneous which resulted in huge additions. It was explained that the assessee runs the business all by himself from his residence at Bhayander and that he had to depend upon an outside consultant for preparation of his books of account and finalization of the accounting statements including Profit and Loss Account and Balance Sheet and these were filed with the return of incom ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the remand report from the Assessing Officer, who had in effect contended that all the additions should be confirmed, the CIT(A) sent the same to the assessee for counter comments. The assessee would appear to have furnished detailed counter comments which are reproduced by the CIT(A) in pages 15 to 18 of the impugned order. The para-wise comments of the assessee have also been reproduced by him in the pages up to page 23. Finally the CIT(A) confirmed the addition of Rs. 9,08,609/-which included the balance shown in respect of Ahuja International at Rs. 8,99,809/- and profit of Rs. 8,800/-. He also confirmed the disallowance of the commission of Rs. 3,50,318/-. The balance of Rs. 1,12,00,276/- was deleted from the assessment. While granti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rule (2) says that no evidence shall be admitted by the CIT(A) as additional evidence unless he records in writing the reasons for the admission. Sub-rule (3) says that the CIT(A) shall not take into account any additional evidence unless the Assessing Officer has been allowed a reasonable opportunity - (a) to examine the evidence or document or to cross-examine the witness produced by the assessee, or (b) to produce any evidence or document or any witness in rebuttal of the additional evidence produced by the assessee. Sub-rule (4) says that nothing in the Rule shall affect the power of the CIT(A) to cause an enquiry by himself under section 251(1)(a) of the Act. It is not in dispute before us that in the present case the CIT(A) has not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fficer and whatever Balance Sheet and Profit and Loss Account were filed before him were all wrong. It was on this pretext that the assessee had filed what he called revised or rectified accounts before the CIT(A) including revised Balance Sheet and revised ledger accounts with supporting evidence. The assessee had also adduced party confirmation statements for revised balances. In effect the assessee was disowning the books of accounts produced by him before the Assessing Officer on the basis of which the assessment was made. The Assessing Officer has recorded in the assessment order that the assessee did not bother to reply to the show cause notice issued by him. If at all the assessee wanted to say that the books of accounts on the basis ..... X X X X Extracts X X X X X X X X Extracts X X X X
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