TMI Blog2015 (12) TMI 457X X X X Extracts X X X X X X X X Extracts X X X X ..... Ld CIT(A) has also dismissed these documents by observing that they are cooked up documents by making general observations, i.e., without actually establishing that the above said documents were bogus in nature. It is not known as to how the copies of income tax returns could be considered to be a cooked up documents. Thus, we notice that the said observations made by the Ld CIT(A) are baseless, not supported by any evidences and are mere surmises. Hence we are unable to sustain his conclusions. We further notice that the assessee has maintained proper books of accounts. The purchases and sales recorded therein have not been found fault with, i.e., no defect has been pointed out by the assessing officer. Hence, we are of the view that there is no ground available with the assessing officer to reject the books of account. Accordingly we are of the view that the assessing officer was not justified in rejecting the books of account and consequently, in our view, the book results should have been accepted. Accordingly, we are of the view that there is no justification or proper ground warranting the estimation of profits in the assessee’s hand in all the three years under considera ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e and Shri Nitesh T Jain, Partner of M/s Mox diam was the modus operandi adopted by us for providing accommodation bills to various interested parties in the market. I also state further that in terms of our letter dated 10/7/2008 we viz., Shri Basant D Jain and Shri Nitesh T Jain myself individually confirmed the statement given in this regard on 09/07/2008 as being correct and true and we stand by it. Accordingly, the assessing officer entertained the view that the purchases and sales shown in the books of accounts of the assessee herein are non- existent and accordingly rejected the books of account. Accordingly the assessing officer estimated the commission income receivable on providing accommodation bills at 2% of the sales reported by the assessee for all the years under consideration. After allowing deduction of 20% towards estimated expenses, the assessing officer determined the total income of the assessee as under:- Assessment Year Returned income Assessed income 2007-08 60,858 11,00,639 2008-09 1,69,571 1,34,11 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... documents, but placed reliance on the statement recorded from Shri Basant Jain, which was originally confirmed by Shri Ramesh L Jain. Accordingly, the assessing officer rejected the book results and estimated the income @ 2% of sales value as stated earlier, even though the commission for accommodation bills was stated as 0.20% for imported diamonds and @ 0.05% on the locally sourced diamonds. 8. The Ld CIT(A) held that the documents relating to concerned parties furnished by the assessee are cooked up documents, since the DDI had reported that such parties did not exist at the given addresses. Accordingly he held that the assessing officer has rightly rejected those documents. He further held that the documents furnished by the assessee are exactly as per the modus operandi admitted during the course of survey operations and statement recorded u/s 131 of the Act. Accordingly the Ld CIT(A) held that the assessing officer was justified in estimating the commission income at 2% of the sales value. Aggrieved, the assessee has filed these appeals before us. 9. We have heard the parties and perused the record. A careful perusal of the record would show that the assessing officer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tions. (g) the duration of survey operations support the case of the assessee that he was constrained to give admission. Hence the subsequent retraction made within a period of one month should be given due weight, more particularly in view of the fact that the survey officials did not unearth any incriminating documents during the course of survey operations. 11. The assessing officer has also placed reliance on the report given by the DDIT (inv.), wherein he had stated that the customers/suppliers of the assessee were not available in the given addresses. When the report given by the DDIT was confronted with the assessee, it has furnished following documents to the assessing officer:- (a) Ledger account copies duly confirmed by the concerned parties. (b) Copies of income tax return filed by them. However, we notice that the assessing officer chose not to examine those documents and he chose to place full reliance on the report given by the DDIT. We are not able to appreciate the said action of the assessing officer. When the assessee was confronted with the report given by the DDIT, in our view, the assessee can at best controvert the same by filing the documents a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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