9911796707
TMI Blog2014 (1) TMI 1971X X X X Extracts X X X X X X X X Extracts X X X X ..... essee at 5% of Gross Turnover after rejecting the books of accounts of the assessee without appreciating the fact that the assessee has not maintained any Stock Register and also did not produce original books of accounts along with bills and vouchers during the course of Assessment Proceedings and also that the assessee has shown very less G.P. and most of its expenses remained unverifiable. 2. The appellant craves leave to add, amend or modify the ground of appeal before or during the course of the appeal." 2. No one was present on behalf of the assessee at the time of hearing however on consideration of material available on record. It was considered appropriate to proceed with the present appeal ex-parte qua the assessee responded ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nts mentioned above, the books of account of the assessee are hereby rejected by invoking the provisions of section 145(3) of the act and the income of the assessee is assessed by applying net profit rate of 5% on the gross turnover of Rs.10,50,75,317/- which comes to Rs.52,53,576/-. Assessee has already shown a net profit of Rs.2016,189/-. Thus Rs.32,37,576/- is added back to the income of the assessee." 4. Aggrieved by this the assessee came in appeal before the First Appellate Authority. Before the CIT(A) various arguments on facts and law were advanced. Apart from that reliance was placed upon the comparative chart filed before the AO in support of the claim that no interference was warranted or the net profit of the assessee had incr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Assessing Officer in the preceding years u/s 143(3) and in support of above position, copy of the assessment order and tax audit report were placed on record. Regarding allegation of low profit rate, it was clarified that the Assessing Officer has not properly appreciated the facts. In fact, there is substantial increase in net profit rate as compared to preceding year and factual position to this effect is supported from relevant details given at page 2 of the assessment order itself. It was further clarified that even though the Assessing Officer made observation about other comparable cases, but no details or opportunity to this effect was provided for clarification by the appellant. Regarding various judgements referred to by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nfronted to the assessee, the observation of the Assessing Officer regarding other comparable case is of no relevance. Regarding case laws referred to by the Assessing Officer and appellant, the case of the appellant is supported by the decision of Jurisdictional High Court referred to above. The case laws referred to by the Assessing Officer are on the basis of specific defects and deficiencies in the account and those judgements have no relevance and bearing to the facts of the case. In the light of above discussion, there is no justification for rejection of trading results u/s 145(3) and estimation of net profit rate and accordingly adhoc trading addition made by Assessing Officer is not sustainable and same is hereby deleted. App ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
