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TMI Blog2014 (1) TMI 592X X X X Extracts X X X X X X X X Extracts X X X X ..... t all cartage bill are fake or highly inflated - It is unreasonable to accept the assessee to produce for verification the persons who did all this work for him - Once the books are rejected, the Assessing Officer may as well have examined the reasonableness of profits of the assessee and pointed out how the profits of the assessee are lesser than the normal profits in that line of business but that exercise has also not been carried out. On one hand, the Assessing Officer has rejected the books of account, and on the other hand, the Assessing Officer has adopted the same book results and disallowed the expenses on estimate basis from the book results – the order for disallowance set aside, which are made by improperly rejecting the book ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... shift 236 bags per day. Taking this an yardstick, he computed the number of workers required to do the job for which assessee has billed Amul. As there was a variance in the number of persons so worked out vis- -vis the number of persons actually employed by the assessee, he was of the view that books of account are not reliable and do not show the correct picture of affairs. As for carting expenses, the Assessing Officer was of the view that vouchers donot appear to be genuine. He also noted, as he claimed to found on making local enquiries, that "there is not much scope of movement of tractors for internal transportation". He was of the view that the vouchers are false and are used to siphon off profits of the firm. In this backdrop, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... all other months as well. These sweeping generalizations, as adopted by the Assessing Officer, cannot meet any judicial approval. As for the rejection of the cartage expenses on the basis of "local enquiries", it is an admitted position that these seemingly vague local enquiries, even if these inquiries actually took place, were neither place on record or confronted to the assessee. In any case, there is a direct confirmation from Amul which is on record and this confirmation is contrary to the said local enquiries. There may not have been any cartage expenses in the last year because there may not have been any such work in the last year, but that fact alone cannot lead to the conclusion that all cartage bill are fake or highly inflated. T ..... X X X X Extracts X X X X X X X X Extracts X X X X
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