Tax Management India. Com
Law and Practice  :  Digital eBook
Research is most exciting & rewarding


  TMI - Tax Management India. Com
Follow us:
  Facebook   Twitter   Linkedin   Telegram

TMI Blog

Home

2016 (2) TMI 665

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... 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 on record, such a conclusion is perverse. Further, nonproduction of stock-register or rates by itself cannot be a ground to reject the confirmations furnished by the assessee in which PAN number/Ward number, address of parties, details of the transactions have been mentioned. No doubt claiming a loss on purchase and sale to the same party may result into a doubt, but such a doubt without any verification or investigation vis-à-vis the evidence tendered does not acquire the character of evidence so as to hold that the trading transactions are bogus or sham. More-so, when the Revenue had requested for examination of the evidence and such request was accepted by the Tribunal in the first round and yet AO failed to carry out investigation. Thus, this is a case of lack of investigation which vitiates the adverse conclusion drawn by the AO. We, the .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... st addresses of the buyers suppliers and also to produce complete books of accounts with vouchers. The AO observed that vide its reply dated 08.09.2011, the assessee submitted the papers which were produced before AO during the course of original assessment proceeding. The AO provided another opportunity to the assessee to file the qualitative and quantitative details of sales and purchases with the addresses of the buyers and sellers but no reply was filed. Further, the AO asked the assessee to file the necessary details and also to produce stock register and rates of different items 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 purc .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ions were made on similar lines before him. The CIT(A) after discussing in detail in para 3.4 to 3.6 of his order has allowed the claim of the appellant after considering the version of the appellant submitted before him. The para 3.4 to 3.6 are reproduced as under:- 3.4 The submissions of the assessee which AO has accepted in asst. order are as under :- 1. Assessee filed various details asked for; 2. Assessee filed audited final Accounts; 3. Details of all the expenses/sales/purchases were produced; and 4. Confirmations were also produced. The AO did not mention even a single discrepancy or mistake or wrong facts. Regarding non production of books of etcs the argument of the assessee's counsel seemed valid that AO was under pressure and time was not given to the assessee, whenever counsel tried to produce the books of accounts. AO has fixed the case for 30.12.08 and completed the asst. on 29.12.08 shows the pressure on AO to complete the assessment. Counsel of the assessee also argued that if the evidence/ confirmation/ books of accounts were not to be considered by the AO then why case was fixed for 30.12.08. 3.5 I have gone through the documents filed by .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ing the latest addresses. He further submitted that the AO never tried to communicate with the buyer and supplier either through mail or through inspector of the ward; and also the AO had not mentioned any discrepancy 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 assessee is engaged in the business of construction and was getting good income. He submitted that the assessee went for the fabric industry for the first time this year and tried into this new business but suffered heavy loss and took our at .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

 

 

 

 

Quick Updates:Latest Updates