TMI Blog2021 (12) TMI 640X X X X Extracts X X X X X X X X Extracts X X X X ..... lock of 5 years starting from assessment year 2012-13 onwards. The assessee has produced assessment orders of other parties and shown a chart wherein the net profit has been accepted in the case of the other assessee in same line of business @ 0.43%. We find that the rejection of the books of accounts by the ld. AO is not proper without finding any latent, patent and glaring defects in the books of accounts of the assessee. Accordingly, we direct the ld. AO to delete the addition made of 8% of the net profit and to accept the book results shown by the assessee. Accordingly, grounds Nos. 1 3 of the appeal of the assessee are allowed. - ITA No. 1529/Del/2018 - - - Dated:- 22-11-2021 - SHRI KULDIP SINGH, JUDICIAL MEMBER AND SHRI PRASH ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ase shows that the assessee is an Individual engaged in trading of buffalo meat at its own proprietary concern M/s Al Rehman Food Exports. Assessee filed return of income on 30.11.2014 declaring an income of ₹ 9,08,649/-. 3. The ld. Assessing Officer picked up the return of income for selection of scrutiny. The assessee has shown total sales of ₹ 23,22,00,000/- shown net profit of ₹ 10,08,650/-. The assessee has submitted the audited accounts wherein the gross profit of 0.47% and net profit rate of 0.43% was shown this year. In the immediately preceding year, gross profit rate was 2.74% whereas the net profit rate was 1.02%. The Assessing Officer noted that the turnover of the assessee has increased, but the gross profi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of accounts were not maintained. The ld. CIT (Appeals) held that the assessee was required to produce books of accounts, which are more than few ledger accounts produced by the assessee during the assessment proceedings. He further held that assessee has not produced quantitative tally and stock register. Therefore, he confirmed the addition on estimating profit at 8% by the Assessing Officer and appeal of the assessee was dismissed. 5. Assessee is aggrieved with the order of the ld. Assessing Officer and preferred this appeal. 6. The ld. AR submitted that the rejection of the books of accounts is not proper. He referred to the audited balance sheet filed by the assessee placed at page Nos. 1 to 15 of the paper book. He submitted tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tter, dated 22.12.2016 the assessee submitted the bankbook, cashbook, ledger account of sales, purchases. Thus, the claim of the ld. AR is that books of accounts are maintained in a computerized system and all the transactions were placed before the Assessing Officer. He further submitted that reason for decrease in profit is merely the foreign exchange loss incurred by the assessee. He also referred to the various decisions where in forex loss is allowable to the assessee. Thus, complete books of accounts were produced, no defects were pointed out there in, and reasons for loss are explained. Hence, the addition deserves to be deleted. 7. He submitted that assessee is in export business. Vide letter dated 26.12.2016 assessee produced th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the books by the ld. Assessing Officer is erroneous. 8. The ld. Departmental Representative vehemently supported the orders of the lower authorities. It was submitted that assessee has not produced the books of accounts and 133(6) notices to the creditors have returned. Quantitative details have also not been submitted and there is a clear-cut finding of the lower authorities for rejection of the books of accounts. Therefore, there is no infirmity in the orders of the lower authorities. 9. We have carefully considered the rival contentions and perused the orders of the lower authorities. We find that the assessee is engaged in the business of export of the buffalo meat. Most of the sale is export of the product. He has shown sale of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and cashbook, the ledger of the creditors and debtors, ledgers of the expenditure and the copies of the bills of export as well as domestic sales. It has also produced the details of the major expenditure. In view of this the claim of the lower authorities that assessee has not produced the books of accounts as well as the finding of the ld. CIT (Appeals) with mere production of some ledger cannot be equated with the production of books of accounts do not hold any water. The assessee has produced complete set of books of accounts. Ld CIT (A) has held that assessee has produced books of accounts. Neither the LD AO nor LD CIT (A) stated that what else was missing in the books of accounts. Thus, despite complete books produced before lower aut ..... X X X X Extracts X X X X X X X X Extracts X X X X
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