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TMI Blog2023 (9) TMI 613X X X X Extracts X X X X X X X X Extracts X X X X ..... the reopening, it was submitted by the ld. AR that in para 2 of the assessment order, the AO has categorically mentioned that the reopening has been done on the ground that there was a difference between purchases as recorded in the audited accounts and as the payment made to Indian Oil Corporation Limited (IOCL). It was the submission that in para 9 of his order, the AO categorically admits that the assessee has been able to reconcile the difference of purchase figures. It was the submission that no addition has been made in respect of purchases. It was further submission that the AO went on to hold that there was ambiguity regarding correctness of the sale figure and in para 10 of the assessment order, the AO on the ground that the true v ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has been estimated at 4%. It was the submission that no evidence has been produced by the assessee to show that his income should be estimated at lower figures. It was the submission that the assessee has not been able to produce the evidence of the valuation of stock and this has resulted in rejecting the books. It was the submission that the opening stock and closing stock valuation was specifically not produced and it has been recorded in the assessment order. It was, thus, submitted that the appeal of the assessee is liable to be dismissed. 7. I have considered the rival submissions. A perusal of the assessment order clearly shows that in para 3, the AO has reopened the assessment specifically for the purpose that there is a differenc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ening fails along with that. In the present case the reopening has been done because there was allegation of understatement in respect of the purchases. When no addition has been made on that count and that issue has already been reconciled by the assessee and accepted by the AO, the reopening itself failed. Consequential assessment will also fail. 9. Coming to the merits, it is noticed from para 10 of the assessment order that the AO having rejected the books of accounts has not given any comparable case for the purpose of estimating the income of the assessee at 4%. Admittedly, the above method for estimation would be the assessee's own declaration for the earlier and subsequent assessments. Even that has not been attempted by the AO. In ..... X X X X Extracts X X X X X X X X Extracts X X X X
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