TMI Blog2022 (11) TMI 412X X X X Extracts X X X X X X X X Extracts X X X X ..... e by ld. CIT(A) is increased from 0.5% to 1% of total turnover. Thus, the grounds of appeal raised by the Revenue are partly allowed. - ITA No. 315/SRT/2019 And ITA No. 316/SRT/2019 - - - Dated:- 10-10-2022 - Shri Pawan Singh, Judicial Member And Dr. Arjun Lal Saini, Accountant Member For the Revenue : Shri Vinod Kumar, Sr.DR For the Assessee : None ORDER UNDER SECTION 254(1) OF INCOME TAX ACT PER PAWAN SINGH, JUDICIAL MEMBER: 1. These two appeals by the Revenue directed against the separate orders of learned Commissioner of Income Tax (Appeals), Valsad both dated 30/03/2019 for the assessment year (AY) 2014-15. 2. In both these appeals, the revenue has raised certain common grounds of appeals, certain facts ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f assessee was selected for scrutiny, the assessment was completed under Section 143(3) of the Income Tax Act, 1961 (in short, the Act) on 29/12/2016. The Assessing Officer while making the assessment, recorded that the assessee has shown loss by making sales of Rs. 160.35 crores against purchase of Rs. 160.41 crores. The Assessing Officer also noted that normally in the line of textile trading, the gross profit ratio ranges from 2 to 5%. The Assessing Officer asked the assessee to provide books of account for verification and justification of profit. The Assessing Officer noted that despite giving numerous opportunity, the assessee did not comply nor furnished any books of account, bank statement, bills and vouchers, thus prevented the Ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... IT(A), the revenue has filed the present appeal before this Tribunal. 6. None appeared on behalf of assessee. Perusal of record shows that this appeal was filed in the year 2019. Notice of hearing was served through registered AD for more than three occasions. The ld. AR of the assessee attended the hearing on 07/12/2021, 15/02/2021, 21/02/2022 and thereafter sent application for adjournment. The assessee was granted last opportunity on 22/08/2022 to make their submission and the appeal was adjourned to 10.110.2022. Today i.e. on 10/10/2022, none appeared on behalf of assessee nor any application for adjournment was filed. In such circumstances, we do not find any justification for adjourning the case and decided to hear the submission o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of accounts and the allied evidences. The AO also conducted enquiries by issuing notice under section 133(6) of the Act calling complete details from the parties from whom the assessee made purchases. In response to such notices, those companies/parties submitted only ledger accounts, no details where furnished with regard to payments of such purchases. Thus, the AO concluded that purchases shown by assessee are not verifiable. The assessee was asked to produce the complete details of month wise purchases, sale and quantity, value, bills, vouchers of expenses and stock statement. The assessee was also asked to produce the lorry receipt no. and truck/vehicle through which the goods were delivered. The AO noted that despite being number of o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the turnover shown is large, thus, under these circumstances, the profit cannot be estimated at normal market rate. The ld.CIT(A), considering the fact of the case held that in his opinion, 1% of addition of total turnover would be fair and reasonable, to meet the end of justice and restricted the addition to that extent only. 10. We find that the present appeal was filed on 30.11.2016. The case was fixed for hearing for the first time on 22.03.2018. The ld.AR of the assessee is seeking dates from 22.03.2018 on one ground or other. Not a single piece of evidence is filed before this Tribunal. Though in additional grounds of appeal the assessee raised plea that no proper opportunity was given and that the assessee was prevented from pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ir books result should be accepted. In view of the aforesaid discussion, we do not find any reason to interfere with the order of ld. CIT(A), which we affirm. In the result the ground No. 1 2 of the appeal is dismissed. 9. Considering the decision of Tribunal in assessee s own case on similar facts in preceding year and respectfully following the same, the estimation made by ld. CIT(A) is increased from 0.5% to 1% of total turnover. Thus, the grounds of appeal raised by the Revenue are partly allowed. 10. In the result, this appeal of the revenue is partly allowed. 11. Now we take ITA No. 316/Srt/2019 for A.Y. 2014-15 wherein following grounds have been raised by the revenue. 1. On the facts and circumstances of the case a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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