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TMI Blog2016 (2) TMI 665X X X X Extracts X X X X X X X X Extracts X X X X ..... 7,85,383/- made on account of disallowance of loss suffered in trading of foam and fabrics. 2. The Ld. CIT (A) has ignored the fact that the assessee did not produce the necessary books of accounts and vouchers for verification despite having been provided ample opportunities by the AO. 3. The appellant craves leave or reserving the right to amend, modify, alter, add or forgo any ground(s) of appeal at any time before or during the hearing of this appeal." 3. Brief facts of the case are that the assessee filed the return on 30.10.2006 declaring income of Rs. 85,833/-. The case was processed u/s 143 (1) of the Income Tax Act, 1961 (hereinafter 'the Act') on 11.07.2007 and the assessment u/s 143 (3) of the Act was completed on 29.12.2008 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s and complete ledger accounts of the parties from whom sales and purchases had been made. The AO observed that the assessee only filed chart containing of sales and purchases. Accordingly, the assessee was provided final opportunity vide note-sheet entry dated 21.12.2011 to produce complete books of accounts including stock register and all the supporting vouchers for verification. The AO observed that again, no new evidence was produced and even books of accounts were not produced. The AO observed that in the original assessment order u/s 143 (3) dated 29.12.2008, the assessee company had shown purchases of Rs. 3,37,29,782/- and had been adjusted against sale of Rs. 2,39,24,400/- thereby claiming loss of Rs. 97,87,382/- on sale and purcha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ant have been considered.: (a) It is not clear what the AO has to do with the latest addresses of the buyers and suppliers; if he has to examine the genuineness of the same, he could have called them on the old addresses as per the record and in case of any discrepancy/lack of response could have formed an adverse view and could have confronted the appellant with the same. The AO has not discharged its onus and neither has shifted the burden of the same to the appellant. (b) It is not possible to disagree with the appellant that it cannot compel the AO to write in its note sheet that the books of a/cs were produced before him. (c) The same issue was before the CIT(A) in the first round and the submissions were made on similar lines be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rs. 97,85,383/- has been deleted." In view of the above discussion, the undersigned does not find any reason to deviate from the finding given by the CIT(A) in his order dated 27.11.2009. Addition of Rs. 97,85,383/- is therefore deleted and the grounds of appeal are allowed." 5. The revenue, being aggrieved, is in appeal before us against the deletion of addition of Rs. 97,85,383/- made on account of disallowance of loss suffered in trading of foam and fabrics and not producing the necessary books of accounts and vouchers for verification despite having been provided ample opportunities by the AO. 6. Ld. DR submitted that the assessee has two types of income i.e. commission and sales/purchase income. The ITAT restored the matter to cond ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... screpancy in the assessment order as far as addresses of the buyer and suppliers are concerned. He further submitted that the confirmation from 90% of the buyers and suppliers were available which was also confirmed by the ld. CIT (A) in the earlier appellate order. With regard to books of accounts and vouchers were not produced, the ld. AR submitted that detailed statement of qualitative and quantitative details of sales and purchase with price made from bills was filed before the AO and the AO had given a reference in para 3 of his assessment order but he never tried to match the details which were filed. He submitted that the assessee produced books of accounts number of times, but those were not checked by the AO. He submitted that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... proach is in blatant disregard of the own stand of the Revenue before the Tribunal in the first round. Thus, to this extent, the approach of the AO is patently erroneous. Now, coming to the merits of the matter, it is seen that assessee has declared sales of Rs. 2,39,24,400/- and purchase of Rs. 3,37,29,782/-. The transactions are duly recorded in the books of accounts which have been examined and accepted in the first round by CIT (A) and no specific observation vis-à-vis the said books of accounts by the AO in the second round. Moreover, these are audited books of accounts. The case of the AO is that new addresses of the parties have not been furnished. In our opinion, without carrying out any investigation in respect of evidences ..... X X X X Extracts X X X X X X X X Extracts X X X X
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