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TMI Blog2015 (3) TMI 7X X X X Extracts X X X X X X X X Extracts X X X X ..... with innocent assesses. 2. Ld Assessing officer has made an addition of Rs. 6,26,631/- on account of income from business and professional which is against the facts of the case and on wrong footings. 3. Ld Assessing Officer has made an addition of Rs. 1,80,112/- arbitrarily on account of incentive received and treated as income from business and profession which is bad in the eyes of law." 3. Apropos ground No. 1 which is general and therefore rejected. 4. Apropos ground No.1, regarding addition of Rs. 6,26,631/- on account of income from business. 5. Brief facts of the case are that the assessee is a whole-sale distributor of milk, appointed by Gujarat Co-operative Milk Federation. For the relevant Assessment Year he has declared sal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and collect the sales proceeds with two wheelers and mobile phone were required. Which should have cost not less than Rs. 30,000/- per month. During the year I have handled the sale with shares shop (up to 8AM) by paying rent of only Rs. 12,000/- for the entire year and completed the work within time. By cutting the expenses in rent and other misc ways I have passed the major portion of the margin. In it the supplier/ vender used to lift milk from my point of rendering cash and empty crates to me at my place of work before no entry time for commercial vehicle. It was a laborious and tedious task. Fur such sale at least independent shop of 100 sq.ft. was required which should have cost me not less than Rs. 1,00,000/- per year. It was possib ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the buyers of milk to remain competitive in the market. However, there is no evidence on record that the appellant has passed on any part of this margin to his buyers. The normal practice of the appellant's business is that various retailers who wish to buy milk etc. approach the distributor at his designated booth and take delivery of the products after buying the same in cash. The retailers' margin is separately provided for as mentioned by the AO at Rs. 9.80 per crate. Moreover, the appellant has not shown any rebate or discount allowed by him to any such buyers in the trading and profit and loss account as had been shown by the appellant in the immediately preceding year i.e. Financial Year ending on 31.03.2007 as reproduced above. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arketing Federation, it was noticed that the appellant was allowed a margin of Rs. 0.40 per liter on all the variants i.e. 4.80/- per crate. However, the assessee declared Gross Profit of Rs. 2,75,898/- on sales of Rs. 4.70 crores giving a GP rate of 0.58%. The AO in the absence of party-wise details rejected the books of accounts of the assessee u/s 145 of the Act and applied the GP rate of Rs. 4.80 per crate/ box and arrived at a Gross Profit of Rs. 9,02,529/-. As the appellant had already shown Gross Profit of Rs. 2,75,898/- an addition of Rs. 6,26,631/- was made to the appellant's income on this account. 11. In our opinion, the conclusion of the AO, to reject the books of accounts merely on the ground of non-furnishing of list of parti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ected above. Needless to say that the AO must give adequate opportunity to the assessee before deciding the issue and the assessee is given liberty to adduce evidences in support of its contention. 13. Apropos ground No. 3 addition of Rs. 1,80,112/- in respect of incentive received and not declared by the assessee. 14. Brief facts of the case is that the AO has made the addition on the basis of entries found in the ledger accounts of M/s. Gujarat Co-operative Milk Federation, which revealed that the assessee has received an incentive of Rs. 1,80,112/- which was not duly reflected in the books of account of the assessee and therefore he made the impugned addition to the income of the assessee. 15. The ld CIT(A) has confirmed the addition ..... X X X X Extracts X X X X X X X X Extracts X X X X
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