TMI Blog2018 (3) TMI 1344X X X X Extracts X X X X X X X X Extracts X X X X ..... ecided in favour of revenue for statistical purposes. - ITA No. 517/JP/2016 - - - Dated:- 22-3-2018 - Shri Vijay Pal Rao, JM And Shri Vikram Singh Yadav, AM Revenue by : Smt. Seema Meena (JCIT) Assessee by : None (Adjournment application rejected) ORDER PER VIJAY PAL RAO, JM : This appeal by the revenue is directed against the order dated 29th February, 2016 of ld. CIT (A)-2, Jaipur for the assessment year 2009-10. None has appeared on behalf of the assessee when this appeal was called for hearing. A letter seeking adjournment is on record by one Shri Rohan Sogani from M/s. R. Sogani Associates, Chartered Accountants. However, there is no power or authority in favour of Shri Rohan Sogani as there is no authority l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 04/JP/2013 in para 5 as under :- 5. We have considered the rival submissions as well as relevant material on record. At the outset, we note that an identical issue has been considered and decided by this Tribunal in case of ACIT vs. M/s Allied Gems Corporation vide order dated 15.12.2017 in ITA No. 794/JP/2011 and CO No. 76/JP/2011 and has held in paras 5 and 8 as under:- 5. We have considered the rival submissions as well as relevant material on record. The Assessing Officer rejected the books of account by invoking the provisions of section 145(3). The issue of rejection of books of accounts is involved in the cross objection filed by the assessee, therefore, we deal with this issue while deciding the cross objection. Once, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2.30 The Hon ble P H High Court in the case of Uplakesh Metal Industrial V CIT 177 taxman 298 held that issue decided by this is in the realm of appreciation evidence. The find of Tribunal as mentioned in this judgment is as under:- However, in our opinion the observation of the Assessing Officer that the assessee was prima facie required to prove the genuineness of the transaction and identity of the creditors is not misplaced because there is no distinction laid between the trade creditor and the non-trade creditor and we are further of the opinion that in case the assessee claims liability of payment to the trade creditors shown in the balance-sheet, the assessee is definitely required to pri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l collected by the Revenue on the touch stone on human probability and considering the accretion in the closing balance in respect of parties for which Revenue has material in thejform of statement. We fell that the ld. CIT(A) was reasonable in confirming the addition of ₹ 5.00 lacs. Hence both the grounds of assessee as well as Revenue are dismissed. We further noted that when the corresponding sale is not in dispute then the question is only regarding the correct amount of purchases and verification of the same. The ld. DR has relied upon the various decisions of Hon ble Gujarat High Court however, we find that in all those decisions there was a finding of facts that the assessee inflated the purchases upto 25% and therefore, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l as ld. DR and considered the relevant material on record. We find that the assessee failed to substantiate the purchases recorded in the books of accounts and to that extent the purchases were not verifiable. The Assessing officer has also pointed that the inventory of closing stock has been valued on estimated basis as pointed out and specifically mentioned in the audit report and therefore, the assessee was not maintaining the stock register showing the quantity and qualitative details including the purity of the previous matters. Therefore, the valuation of the closing stock was also found to be estimated and not the actual and correct value. The AO issued summons to the parties from whom the assessee made the purchases however, there ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n this year I uphold the decision of the AO to reject the books of accounts of the assessee and estimate his income. Thus, the ld. CIT(A) has decided this issue by following decision of this Tribunal in assessee s own case for the assessment year 2006-07. Hence, we do not find any error or illegality in the orders of the ld. CIT(A) qua this issue. Accordingly, the addition made by the authorities below on account of unverifiable purchases is restricted to GP rate addition to be computed by the AO on the basis of past history of the assesee comprising the G.P. rate declared and accepted by the AO as well as GP rate which has attained finality. Therefore, for limited purposes computing the income by applying the average GP rate o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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