TMI Blog2022 (9) TMI 500X X X X Extracts X X X X X X X X Extracts X X X X ..... n variations etc. CIT(A) has also pointed out anomaly in the books of the assessee - CIT(A) has rightly upheld the order of the AO rejecting the books of accounts of the assessee and thereafter justifiably estimating net profit on the basis of that returned in the preceding year. Accordingly, all grounds of appeal of the assessee are dismissed. - ITA No. 216/Ahd/2022 - - - Dated:- 8-9-2022 - SMT. ANNAPURNA GUPTA , ACCOUNTANT MEMBER Assessee by : None Revenue by : Shri Mukesh Thawani ORDER The present appeal has been filed by the assessee against order passed by the Commissioner of Income Tax(Appeals), National Faceless Appeal Centre (NFAC) (in short referred to as ld.CIT(A) under section 250 of the Income Tax A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... BEFORE AND DURING THE APPELA PROCEEDINGS 4. As transpires from order of the authorities below, the assessee had returned income declaring loss of Rs.2,96,77,622/-. During the assessment proceedings there was total non-cooperation on the part of the assessee in the assessment proceedings and no details were filed by the assessee . Accordingly, the AO was left with no choice but to pass an ex parte assessment order on the basis of material before him. Noting that in the immediately preceding year the assessee had returned net profit of 0.31% in its business, applying the said net profit to the sales of the impugned year, the AO accordingly assessed the net profit of the assessee at Rs.3,25,740/-, as against the huge loss returned by th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the year under consideration is that major sale of cotton is by way of export from India to other countries such as China and Bangladesh etc. and the export of textile including cotton from India to China was dipped during the period under consideration ever since the fall in demand of Indian textile merchandise in China. As a result of this the domestic supply was more in the year under consideration compared to the previous year. The prices in the domestic market were high in the period in which the Raw Material were purchased in the previous year and at the time of selling the same the prices dragged down and being a prudent businessman, the appellant was forced to sell the cotton at the reduced prices which led to lower turnover in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urchase bill. The appellant has explained that during the year the export of cotton from India to China and other countries dipped but there is no evidence in the audit report that the appellant had any export earnings during the year. Therefore, the explanation filed by the appellant for low profit margin during the year cannot be accepted. Perusal of the final accounts of the appellant that reveals that there was a gross loss of Rs. 1,65,88,240 at the rate of -15.79 % during the year. It is seen from the manufacturing expenses and under the head raw materials consumed that the opening stock was Rs. 4,80,14,464 and purchases during the year was Rs. 6,62,91,525 but closing stock was shown as NIL. The stock statement in quantity va ..... X X X X Extracts X X X X X X X X Extracts X X X X
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