9911796707
TMI Blog2023 (1) TMI 1012X X X X Extracts X X X X X X X X Extracts X X X X ..... rvey under Section133A of the Act was carried out on 20.12.2012 where certain disclosures were made by the assessee. The Assessee filed return of income declaring Rs.2,78,37,670/- for the Assessment Year 2013-14 in question which was subjected to scrutiny assessment. The Assessing Officer while framing the assessment inter alia made certain additions on account of lower net profits percentage by invoking Section 145(3) of the Act. The amount of addition was subsequently revised under Section 154 of the Act and eventually an addition of Rs.33,11,182/- was retained on the grounds of lower reporting of net profit. 3. The assessee challenged the aforesaid action of the Assessing Officer before CIT(A). The CIT(A) did not embrace the plea of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rted during the year is Rs. 90.30 crore on which the profit of Rs.5.49 crore has been declared. The CIT(A) himself in paragraph 18 of the appellate order admitted the fact of slight decline in net profit. The Assessing Officer has not pointed out any specific defect or discrepancy or any abnormal variation in various expenses. The sole basis for making such estimated addition is that original bills and vouchers were not produced before the Assessing Officer and thus the completeness of books of account is not established. The ld. counsel next adverted to paragraph 1 of the assessment order and submitted that it is an admitted fact by the Assessing Officer himself that assessee has attended the assessment proceedings diligently and filed nec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Hon'ble Delhi High Court in the case of CIT vs. Paradise Holidays (supra) and other judgments. The ld. counsel thus urged for indulgence of the Tribunal in respect of such unjustified addition. 7. The ld. DR for the Revenue on the other hand relied upon the action of the Assessing Officer and CIT(A) and submitted that the onus was on the assessee to furnish the supporting documents in original to vouch the authenticity of the books of accounts. The Assessing Officer has rightly invoked Section 145(3) in the absence of discharge of onus by the assessee and was thus justified in embarking upon estimated additions. 8. We have carefully considered the rival submissions. The estimation of profits consequent upon rejection of books under Sectio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on of rejection of books of account which are audited and are without any qualification solely on the basis of general remarks that photocopy of the bills have been produced instead of original bills. No specific instance has been provided in the order to appreciate as to how such delinquency on the part of the assessee has resulted in unreliability of books per se. Admittedly, the photocopies of bills and vouchers were duly produced, the Assessing Officer has not made any independent inquiry on the correctness of the bills from third parties. The profits declared in the instant case being in the vicinity of the profits declared in the earlier years, we see no apparent justification whatsoever in the action of the Revenue. 10. The insignif ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
