9911796707
TMI Blog2015 (2) TMI 543X X X X Extracts X X X X X X X X Extracts X X X X ..... n of own recorded sales - rejection of books of accounts - Held that:- The GP disclosed by assessee having been accepted; no specific instances of deficiency of sale or purchase in a/c books; no proof of unrecorded purchases or sales having been brought on record, we see no justification for rejection of books of the assessee. The rejection of books by lower authorities is only on surmises and not supported by any cogent or objective reasons. Consequently, we delete the additions in respect of rejection of books, estimation of sales/purchases and consequent estimation of GP in the result assessee's ground in this respect succeeds - Decided against revenue. - ITA 234/2014 - - - Dated:- 10-2-2015 - MR.RAVINDRA BHAT and MR. R.K.GAUBA , JJ. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction 142(2A). That exercise ran into technical problems on account of the fact that the extension of time for completing the special audit was not agreed to be extended by the assessee; but was done at the instance of the special auditor. The special auditor failed to understand that embroidered finished goods cannot, in any case, be traced out from opening stock inventory and purchases made. The ITAT therefore rejected the AO s determination based on the sub-audit. The AOs order in the present instance was carried in appeal to the CIT, who granted substantial relief in respect of the matters which are subject matter of the present appeal. However, relief was denied to the extent of ₹ 4,07,355/- on the second question i.e. on recorde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4. As far as the first question is concerned i.e. deletion of the sum of ₹ 83,25,768/-, we notice that the ITAT dealt with this issue in para 13 of the impugned order; it referred to the detailed findings of the CIT(Appeals) in para 13.5. The ITAT s findings are as follows : 17.3. The assessing officer's suspicion starts qua the trading results of the assessee as mentioned above on a presumptive basis that the assessee's sales were nearly the opening stock. Inventory of closing stock filed by the assessee was verified by assessing officer on test check basis. Assessing officer then required the assessee to precisely identify the item mentioned in the closing stock and tally it with the purchase vouch ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ions. CIT(A) has referred to his order for AY 1994-95, though the assessment for AY 94-95 has been technically quashed by ITAT order, however the observations of the CIT(A) therein are on merits and tally with our views which are taken independently. 5. The CIT(Appeals) and the ITAT - as is evident from the above extract took note of the reasoning and the materials. Both the authorities were guided by the peculiar nature of the transactions involved where the assessee purchased raw and semi-finished products and thereafter sent them for embroidery and other work before the finished products were made available to it for sale. No fresh ground has been made out in the present appeal to show why the ITAT s reasoning, is unsustainable in la ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation for rejection of books of the assessee. In view thereof, in the peculiar facts and circumstances of this case we uphold the book results and G.P. disclosed by the, assessee being satisfactory no addition is called for. The rejection of books by lower authorities is only on surmises and not supported by any cogent or objective reasons. Consequently, we delete the additions in respect of rejection of books, estimation of sales/purchases and consequent estimation of GP in the result assessee's ground in this respect succeeds. Revenue's grounds in this respect fail. 7. Like in the case of the first issue sought to be raised, no question of law arises. What the revenue urges is detailed re-appreciation of the facts - which is i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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