TMI Blog2024 (5) TMI 232X X X X Extracts X X X X X X X X Extracts X X X X ..... AT:- There no finding was recorded by the AO to doubt the credibility or correctness or completeness of the books of accounts of the assessee. Yet, since the books of accounts of the assessee came to be rejected the Assessing Officer further proceeded to disturb the gross profit rate for the assessment year in question. Relying on gross profit rate achieved by the assessee in the previous three years, addition of about Rs. 3 crores was made. We find no error on part of the Tribunal in recording either of the above findings. Once the CIT (Appeals) looked into the vouchers of cash expenses and recorded a clear finding that those were duly vouched except for two expenditures, in absence of any material shown to establish that that finding was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Hon'ble Saumitra Dayal Singh And Hon'ble Donadi Ramesh JJ. For the Appellant : Gaurav Mahajan ORDER 1. Heard Sri Gaurav Mahajan, learned counsel for the revenue and Sri Ashish Bansal, learned counsel for the assessee. 2. Present appeal has been filed under Section 260-A of the Income Tax Act, 1961 (hereinafter referred to as the 'Act') arising from the order of the Income Tax Appellate Tribunal, Varanasi Bench, Varanasi dated 16.11.2023 in Income Tax Appeal No. 217/ALLD/2017 for A.Y. 2014-15. By that order, the Tribunal has dismissed the appeal filed by the revenue and confirmed the order of the CIT (Appeals) dated 03.05.2017. 3. The appeal has been pressed on the following questions of law : 1. Whether the Tribunal has fai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fit rate (disclosed by the assessee), arising from his finding on rejection of books of accounts. That finding was primarily based on other findings recorded by the Assessing Officer affecting the credibility of books of accounts of the assessee. Thus, according to the Assessing Officer the assessee had made payments in cash in excess of Rs. 20,000/- (each), totaling to Rs. 25,29,905/-. Those being in contravention of Section 40-A(3) of the Act, besides disallowance of expenditure claimed, the Assessing Officer found that the books of account of the assessee were not reliable. Also, the Assessing Officer had recorded a finding to disallow expenditure Rs. 7,20,834/- being 10% of the expenditure incurred on consignment sale claimed by the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f that finding, it has to be acknowledged that the vouchers in the books to the extent of Rs. 25,48,011/- were duly vouched and verified. The said finding of the Tribunal has not been shown to be perverse or patently erroneous. 7. As to the ad hoc disallowance of expenditure incurred on consignment sale, the Tribunal has found the issue to be purely academic in nature. It has observed, though there is recital in the assessment order, no addition was made in the final computation on income of the assessee. In absence of rectification proceeding undertaken by the Assessing Officer at the relevant time, the assessment order had attained finality to that extent. Hench no disputed expenditure existed. 8. We find no error on part of the Tribunal ..... X X X X Extracts X X X X X X X X Extracts X X X X
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