TMI Blog2011 (6) TMI 1004X X X X Extracts X X X X X X X X Extracts X X X X ..... the year, the assessee has shown purchases to the extent of 5,92,83,987/-. From the purchase details, the AO noticed that the assessee has made purchases to the extent of ₹ 1,65,16,912/- from 12 parties. The names of such parties have been mentioned at page 2 of the assessment order. The Department has noticed that such parties have been indulging in the issuing of bogus bills. The AO has reproduced the relevant extract from the statement of Shri Ravi Haldiya recorded u/s 132(4) of the I.T. Act in his order in which Shri Ravi Haldiya gave the details of the parties which were issuing bogus bills. The relevant statement of Shri Ravi Haldiya is available at pages 3 to 7 of the assessment order. The AO also referred to the list prepared ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... verifiable purchases, the ITAT Jaipur Bench is consistently holding that books of accounts are to be rejected. The Hon'ble Apex Court in the case of Kanchwala Gems vs JCIT , 288 ITR 10 has also upheld the rejection of books of accounts. We therefore, hold that the ld. CIT(A) was justified in upholding the rejection of books of accounts. 3.1 The second ground of appeal of the assessee is that the ld. CIT(A) has erred in confirming the trading addition of ₹ 8,55,922/- by applying the gross profit rate of ₹ 14.21% while the revenue is aggrieved against reducing the trading addition to ₹ 8,60,102/- as against ₹ 41,29,228/- made by the AO. 3.2 The AO after rejecting the books of accounts made the trading additio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e, the same should be applied in the year under consideration. 3.5 On the other hand, the ld. DR supported the order of the AO. 3.6 We have heard both the parties. In the in the immediately preceding assessment year, the Tribunal vide its order dated 13th May, 2011 in the case of the assessee in ITA No.1266 JP/2010 has upheld the rejection of books of accounts and directed the AO to apply the gross profit rate of 12.5%. In the immediately preceding assessment year, the non-verifiable purchases were to the extent of ₹ 83,30,193/-.Out of total non-verifiable purchases, the purchases to the extent of ₹ 32,80,169/- were included in the closing stock. Thus such non-verifiable purchases has been sold during the year and the ld. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ₹ 50,000/- 2. Telephone expenses ₹ 4,469/- 3. Travelling expenses ₹ 1,24,041/- 4.2 In the immediately preceding year, the ld. CIT(A) deleted the disallowance out of freight and cartage expenses. The Tribunal while deciding the appeal in the case of the assessee in the immediately preceding year vide its order dated 13th May, 2011 in ITA No. 1266/JP/2010 upheld the order of the ld. CIT(A) in deleting the disallowance out of freight and cartage expenses. Following our order for the earlier year, the disallowance out of freight and cartage is deleted. 4.3 The disallowance out of telephone expenses i ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
