TMI Blog2018 (12) TMI 884X X X X Extracts X X X X X X X X Extracts X X X X ..... also not pointed out any particular defect or discrepancy in the accounts books maintained by the assessee”, in our considered opinion, would have no locus standi once the assessee did not produce any books of accounts before the AO. Ld. CIT(A) is, therefore, not justified to accept the plea of the assessee regarding wrong rejection of books of accounts. - decided in favour of Revenue. - ITA No.4540/Del/2013 - - - Dated:- 13-12-2018 - SHRI H.S. SIDHU, JUDICIAL MEMBER AND SHRI L.P. SAHU, ACCOUNTANT MEMBER For The Department : Shri Sridhar Dora, Sr. DR For The Assessee : None ORDER PER L.P. SAHU, A.M. The appeal filed by the Revenue is directed against the order of Ld. Commissioner of Income Tax (Appeals)- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -. Initially return was processed u/s 143(1) and later on the case was reopened by issuing notice u/s 148 of the Income Tax Act. In response, the assessee submitted that the original return filed on 29.11.2006 may be treated as return field in response to notice for reassessment proceedings. Thereafter statutory notices were issued to the assessee. 3. The assessee company was carrying the business of trading in home appliances during the year under consideration. Further AO on perusal of assessee s trading, profit loss account, calculated the cost of goods sold at ₹ 5,25,52,509/- (purchase of ₹ 2,08,53,514/- and decrease in stock ₹ 3,16,98,995/-) as against the sale thereof at ₹ 1,60,65,800/- declared by the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ated average GP rate as under :- A.Y. 2007-08 2005-06 2004-05 2006-07 Sales 12716416 65306948 108580376 16065800 Purchases 12535964 37377377 112282061 2 0853514 (Increase)/decrease in stock (3229694) (3435675) (18299816) 31698995 Cost of purchase 9306270 33941702 93982245 52552509 Profit/(loss) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... A) is not justified to accept the plea of the assessee regarding the rejection of books of accounts by the AO. Ld. CIT(A) has wrongly stated that the AO has failed to point out any defect or discrepancy in the books of accounts maintained by the assessee whereas the books of accounts were never produced before the AO and on the last date of hearing of the reassessment proceedings the AR of the assessee showed his inability to produce the books of accounts, on the pretext that the books of accounts were lost during shifting of business from SION Mumbai to Gurgaon. Ld. AO has after taking reasonable rate of gross profit for the two previous assessment years and one subsequent year of the assessee s business rightly calculated average GP rate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n for doubtful debts shown at ₹ 1.58 crore). These expenses summed up to ₹ 4.5 crore only and do not justify an addition of ₹ 5.61 crore in sundry creditors during the relevant previous years. You are requested to explain the difference. C. The total purchases as per P L account are declared at ₹ 208,53,514/- while as per Annexure BA (furnishing particular of payment made to person specified u/s 40A(2)(b) to the Audit Report, the purchases amounts to ₹ 1071,10,094/- from the related parties as detailed under : i) Birla International Pvt. Ltd. ₹ 285,36,222/- ii) Birla Power Solution Ltd. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , no such fact of missing of accounts was unfolded by the assessee at any of the dates except the last date of hearing. Besides, the finding of Ld. CIT(A) as mentioned in his order AO had also not pointed out any particular defect or discrepancy in the accounts books maintained by the assessee , in our considered opinion, would have no locus standi once the assessee did not produce any books of accounts before the AO. Ld. CIT(A) is, therefore, not justified to accept the plea of the assessee regarding wrong rejection of books of accounts. Therefore Ld. CIT(A) was not justified to give relief of ₹ 65,89,300/-. 10. In the result appeal of the revenue is allowed. Order pronounced in the Open Court on 13th December, 2018. - - T ..... X X X X Extracts X X X X X X X X Extracts X X X X
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