TMI Blog2018 (9) TMI 285X X X X Extracts X X X X X X X X Extracts X X X X ..... of 5%. The addition was made of ₹ 11,78,847/- to the returned income of assessee is reasonable as against huge claim of expenditure. Considering the totality of the facts and circumstances, we do not find any justification to interfere in the orders of the authorities below, therefore, we dismiss the appeal of the assessee. - ITA No:- 812/Del/2014 - - - Dated:- 4-9-2018 - SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER For The Assessee : Sh. V.S. Dubey, Adv. For The Revenue : Sh. Arun Kumar Yadav, Sr. DR ORDER PER: BHAVNESH SAINI, JM This appeal by the assessee has been directed against the order of Ld. CIT(A)- XXVIII, New Delhi, dated 06.11.2013 for Assessment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee and condone the delay in filing the appeal beyond period of limitation. 5. Briefly the facts of the case are that the assessee filed return of income declaring income of ₹ 5,30,030/-. It was taken up for scrutiny assessment. The assessee is an individual and is engaged the business of fabrication of garments for Exports houses on contract basis and has declared income from business profession. The assessee has declared NP rate for period under consideration at 1.74% on declaring a turnover of ₹ 3,61,77,535/- as against NP rate of 1.90% in the immediately preceding year at a turnover of ₹ 1,39,95,104/-. During the course of assessment proceedings, the assessee was required to produce books of accounts along w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... job work is supplied by exporter and the consumables like thread and needles are debited to the account of the assessee. All the machinery for job work is arranged by the contractee and the repair part is debited to the account of assessee. The AO made addition without giving an opportunity to the assessee to rebut the allegation. The AO was not justified in estimating the Net Profit by applying NP rate of 5%. All the expenses are entered into the books of accounts which are audited. The AO failed to appreciate that total expenses of ₹ 355.47 lacs are booked in the books of accounts, in which a sum of ₹ 3.02 lacs were incurred in cash which constitutes less than 1% of the expenses. It was further submitted that assessee has bee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t assessee was asked to justify the claim of expenses of ₹ 2.61 crores claimed as salary against turnover of ₹ 3.61 crores. The assessee was directed to produce to copy of agreement for job work and evidence of expenditure on thread and needle and conveyance expenses and the salary sheets of Palwal Craft. However, the details asked for were not produced. The Ld. CIT(A) accordingly confirm the rejection of the books of account and estimation of NP rate of 5% because the expenses debited in the books of accounts were not authentic, and were not supported by bills and vouchers. The expenses were found to be inflated, therefore this appeal is dismissed by the Ld. CIT(A). 8. After considering the rival contentions, we do not find ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... able on record that signature on the salary sheet did not match for preceding months. Specific instance have been given and quoted at page 7 of the Appellate Order of the Ld. CIT(A). No ESI number have been provided for the persons to whom salary payment have been made. No person has signed the salary receipt on revenue s stamp. The assessee has declared turnover of ₹ 3.61 crores against which assessee has claimed salary expenses of ₹ 2.61 crores. Therefore, burden was upon assessee to prove that salary was paid to the persons wholly and exclusively for the purpose of business. However, the assessee did not produce complete bills and vouchers of the salary expenses and whatever detail is produced on account of salary payment, th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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