TMI Blog2012 (8) TMI 1143X X X X Extracts X X X X X X X X Extracts X X X X ..... nder Section 68 of the Income-tax Act, 1961 amounting to ₹ 72,00,500/- and addition on account of low gross profit amounting to ₹ 4,66,500/-. He stated that during the course of assessment proceedings on 24.12.2009, the Assessing Officer asked the assessee to produce all the creditors on 29.12.2009 alongwith their books of account, bank statements and other documentary evidence in support of their having given loan to the assessee. That the time of just less than a week allowed by the Assessing Officer was inadequate to produce the creditors. He submitted that if the matter is set aside, the assessee is ready to produce the creditors before the Assessing Officer. 3. With regard to the addition for gross profit also, the learn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Shri Prem Chand. However, the assessee failed to produce the above mentioned alleged cash creditors and in turn failed to prove the genuineness and existence of the alleged cash creditors M/s Garg Associates, Shri Umesh Garg, and M/s Sugandh Spices. 6. From the above, it is evident that on 24.12.2009, the Assessing Officer asked the assessee to produce the creditors on 29.12.2009 and again on 30.12.2009. Thus, the total time allowed by the Assessing Officer is only six days. In our opinion, the same cannot be said to be an adequate opportunity. 7. With regard to the trading addition of ₹ 4,66,500/-, the finding of the Assessing Officer is as under:- It is noticed that the average GP rate varies from 3.7% in February, 2007 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... since we are setting aside the issue relating to cash credit, we deem it proper to set aside the order of the Assessing Officer with regard to gross profit addition also. The Assessing Officer will examine the assessee s books of account and if he finds that the books are liable to be rejected as per the provisions of Section 145, then only, he will proceed to reject the trading result and estimate the gross profit at a reasonable and fair rate. Needless to mention that the Assessing Officer will allow adequate opportunity to the assessee of being heard. 9. In the result, the assessee s appeal is deemed to be allowed for statistical purposes. Decision pronounced in the open Court on 31st August, 2012. - - TaxTMI - TMITax - Income T ..... X X X X Extracts X X X X X X X X Extracts X X X X
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