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2015 (8) TMI 1281 - ITAT CHANDIGARH

2015 (8) TMI 1281 - ITAT CHANDIGARH - TMI - Rejection of books of accounts - profit rate estimation of 1.5% - Held that:- No opening stock inventory and closing stock inventory in quantity as well as in value was furnished. The assessee did not produce any stock register. The Assessing Officer considered that even if rebate and discount is reduced, then GP would work out to 0.29%.

Further, the last questionnaire issued by the Assessing Officer was not responded to by the assessee, the .....

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claim made by the assessee. Considering the conduct of the assessee, in not filing complete details, we do not find any justification to interfere with the orders of authorities below - Decided against assessee

Disallowance of expenses and under section 40A(3) - Held that:- Once GP rate is applied, no further disallowance could be made out of various expenses as well as under section 40A(3) of the Income Tax Act. We, accordingly, following the decision in the case of Banwari Lal Bans .....

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e ld. CIT(Appeals) and even no evidence have been produced before us to explain the above issue, therefore, we do not find any error in the orders of the authorities below in making and confirming the addition. - Decided against assessee

Addition of deduction claimed under section 80C being the amount of tuition fees paid by the assessee for school going children - Held that:- The assessee did not furnish any evidence regarding payment of the tuition fee therefore, addition was made. .....

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p> O R D E R PER BHAVNESH SAINI,JM This appeal by assessee is directed against the order of ld. CIT(Appeals) Chandigarh dated 29.10.2012 for assessment year 2009-10. 2. We have heard ld. Representatives of both the parties and perused the findings of authorities below. Briefly the facts of the case are that the assessee filed return of income of ₹ 3,01,620/-. The case was selected for scrutiny. The Assessing Officer issued detailed questionnaire on .....

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ht and despite giving adjournment, nobody appeared on the date fixed for hearing before ld. CIT(Appeals) and even no written submissions have been filed. The ld. CIT(Appeals), therefore, decided the appeal of the assessee virtually ex-parte. In the background of these facts, we proceed to decide the grounds of appeal raised by the assessee in the present appeal. 3. Ground No. 1 is general and need no adjudication. 4. On ground No. 2, assessee challenged the order of ld. C .....

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According to the Assessing Officer, if rebate and discount is reduced, then GP works out to 0.29% which was quite low. The Assessing Officer, therefore, invoked the provisions of Section 145 of the Act and rejected the books of account. The Assessing Officer applied GP rate of 2% resulting into addition of ₹ 29,27,768/-. No submissions have been made before ld. CIT(Appeals) to challenge the above addition made by the Assessing Officer. The ld. CIT(Appeals) finding no challenge to the addi .....

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6. On the other hand, ld. DR relied upon orders of the authorities below and submitted that since assessee did not produce sufficient material before the authorities below and no submissions have been made, therefore, appeal of the assessee may be dismissed. 7. On consideration of the rival submissions, we do not find any merit in the appeal of the assessee on this ground. The Assessing Officer found the GP rate of the assessee to be low. No comparative case was filed. The ass .....

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therefore, it is clear from the findings of the authorities below that assessee did not cooperate in finalization of the assessment and no complete details were furnished. Therefore, Assessing Officer was justified in rejecting the book results. Since complete details have not been furnished even before us, therefore, history of the assessee could not be considered favourably because for the year under assessment as well as for earlier years, no details have been produced before us i .....

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on 40A(3) of the Income Tax Act. Since these issues are identical, therefore, we decide the same together. The assessee had claimed various expenses like telephone expenses, traveling expenses, insurance, office expenses and freight and cartage in a sum of ₹ 4,71,177/-. Since the assessee did not furnish vouchers and complete details, therefore, Assessing Officer disallowed 20% out of these expenses and made addition of ₹ 94,235/-. The ld. CIT(Appeals) also noted that the element of .....

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#8377; 3,00,000/-, M/s Shakti Trading Co., Hoshiarpur ₹ 2,95,000/- and M/s S.M. Steel Traders (India), Mandi Gobindgarh in a sum of ₹ 15 lacs and ₹ 14 lacs. The Assessing Officer noted that despite giving specific opportunity to explain the payments made in cash, assessee did not file any reply therefore, addition of ₹ 34,95,000/- was made under section 40A(3) of the Income Tax Act. The ld. CIT(Appeals) also noted that since no evidence has been produced before him and no .....

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a sum of ₹ 3 lacs. Similarly, he has submitted that M/s Shakti Trading Co. Hoshiarpur made payment to the assessee in a sum of ₹ 2,95,000/- which is clear from copy of account of this party (PB-63) and further submitted that in the case of M/s S.M. Steel Traders, the amount is paid by assessee through RTGS issued by his banker which is also clear from the copy of account of this party (PB-69). The ld. DR, however, submitted that since these evidences were not filed befor .....

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ble and have been rejected and income is estimated by applying higher GP rate. The Hon'ble Allahabad High Court in the case of CIT V Banwari Lal Banshidhar 229 ITR 229 held as under : Held, affirming the decision of the Tribunal, that no disallowance could be made in view of the provisions of Section 40A(3) read with rule 6DD(j) of the Income-tax Rules, 1962, as no deduction was allowed to and claimed by the assessee. When the gross profit rate was applied, that would take care o .....

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de out of various expenses as well as under section 40A(3) of the Income Tax Act. We, accordingly, following the decision in the case of Banwari Lal Banshidhar (supra) set aside the orders of authorities below and delete the addition of ₹ 94,235/- and ₹ 34,95,000/-. The ground Nos. 3 & 6 of the appeal of the assessee are allowed. 12. On ground No.4, assessee challenged the addition of ₹ 25,00,000/- on account of cash credit under section 68 of the Ac .....

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regarding source of the deposit of this amount. Therefore, Assessing Officer made addition under section 68 of the Income Tax Act. Since no submissions have been made before ld. CIT(Appeals), therefore, addition was confirmed and this ground of appeal of the assessee was dismissed. 13. We have heard ld. Representatives of both the parties. The ld. counsel for the assessee has shown his inability to produce any evidence regarding source of deposit of ₹ 25 lacs by Sh .....

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