TMI Blog2021 (1) TMI 873X X X X Extracts X X X X X X X X Extracts X X X X ..... ct before disturbing the trading results. The submission of the assessee that the learned Assessing Officer did not bring any documentary evidence on record to show that the assessee did not purchase any goods as alleged in the assessment order goes undisputed. The prime factor which convinced the Ld. CIT(A) is that the learned Assessing Officer examined the books of accounts and documents punished by the assessee, both at the time of the assessment as well as during the first plate stage, but notice it was pointed out in them. Sales were accepted, but the purchases were suspected, leading to the rumours situation of producing the abnormal GP rate at 56.6%, which is not common in the business conducted by the assessee. Learned Assessing Officer failed to notice this factor also. For these reasons, taking a comprehensive review, we are of the considered opinion that the view taken by the learned Assessing Officer does not appear to be sound and the Ld. CIT(A) deleted the addition by taking a pragmatic view. We, therefore, do not think it necessary to interfere with the same. Unexplained deposits in the savings bank account - HELD THAT:- It is not the case of the revenue befo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cable not to believe the purchases in the event of which the situation gives rise to abnormal GP and NP. 4. In respect of the other addition of ₹ 40,20,000/-, it was made on account of unexplained deposits in the savings bank account. According to the assessee the said amount was duly accounted for in the books of accounts regularly and properly maintained by the assessee and the transactions were recorded the which were examined by the learned Assessing Officer and found to be correct. 5. During the course of first appellate proceedings, assessee filed many documents and the Ld. CIT(A) forwarded the same to the learned Assessing Officer and obtained remand report. Ld. CIT(A) considered the remand report and the evidence produced by the assessee and analysed the same in the facts and circumstances of the case to reach a conclusion that the additions cannot be sustained. He recorded so many reasons, which we would advert at relevant place, to support this conclusion. After taking into consideration the remand report and the submissions made on behalf of the assessee, Ld. CIT(A) thought it fit to delete this addition also. 6. Aggrieved by the deletion of these two addi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssioner of Trade Tax with reference to the address of the assessee, nothing material could be turned out on that aspect. It s also not in dispute that the learned Assessing Officer had examined the books of accounts and documents, as is evident from the assessment order, but it did not a detail out any discrepancy therein. At the same time the learned Assessing Officer neither rejected the books of accounts nor invoked the provisions of section 145 of the Act before disturbing the trading results. The submission of the assessee that the learned Assessing Officer did not bring any documentary evidence on record to show that the assessee did not purchase any goods as alleged in the assessment order goes undisputed. 10. Learned Assessing Officer made the addition basing on the report of the Inspector, which reveals the fact that the enquiries made in respect of one RK Gotawale whereas according to the assessee the business was M/s RK gifts. It is also not in dispute that the assessee contended before the learned Assessing Officer that the Puja articles like Trishul and Manjeera which are of brass items are exempt from VAT as per schedule-1 of the UPVAT Act and dealers are also not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed out that the enquiries of the income tax Inspector were in respect of the business of M/s RK Gotewale and also in respect of the assessment years which were 3 subsequent to the assessment year under consideration, and therefore much relevance cannot be placed on the report of the income tax Inspector. The prime factor which convinced the Ld. CIT(A) is that the learned Assessing Officer examined the books of accounts and documents punished by the assessee, both at the time of the assessment as well as during the first plate stage, but notice it was pointed out in them. Sales were accepted, but the purchases were suspected, leading to the rumours situation of producing the abnormal GP rate at 56.6%, which is not common in the business conducted by the assessee. Learned Assessing Officer failed to notice this factor also. For these reasons, taking a comprehensive review, we are of the considered opinion that the view taken by the learned Assessing Officer does not appear to be sound and the Ld. CIT(A) deleted the addition by taking a pragmatic view. We, therefore, do not think it necessary to interfere with the same. 14. Now coming to the addition of ₹ 40,20,000/- on accou ..... X X X X Extracts X X X X X X X X Extracts X X X X
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