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TMI Blog2015 (3) TMI 7X X X X Extracts X X X X X X X X Extracts X X X X ..... and pass on the margin and incentive to the customers. No doubt, that approach has resulted into reduction of expenses including rent from ₹ 36,000/- for 5 months to ₹ 12,000/- for the entire year. However, we feel that the said explanation too, cannot be a sole basis to accept the declared result. In such circumstances, we deem it appropriate to remit the matter back to the file of AO, for re-consideration, of the trading results declared by the assessee, in the light of the explanation tendered before us. - Decided in favour of assessee for statistical purposes. Addition in respect of incentive received and not declared by the assessee - Held that:- We are remitting back the matter to the file of the AO, we set-aside the order of the AO on this issue and direct that he may ascertain the veracity of the claim of the assessee that the impugned incentive pertains to the earlier Assessment Year and not relevant to the Assessment Year under consideration. If the said claim of the assessee is found correct, then the impugned addition may be deleted otherwise it may be upheld.Decided in favour of assessee for statistical purposes. - ITA No. 5912/Del/2012, ITA No. 5913/D ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is and it was not possible to furnish party wise details of each buyer as there were number of buyers buying milk from the assessee. Further it was submitted by assessee, specifically as under:- Average sale of milk was more than 500 crates of 12 ltd each. It we had distribution in our hands, we should have required three auto loading rickshaw of the cost of min ₹ 12,000/- per rickshaw per month to complete the supplies before 8 AM in walled city. In addition to it, three sales persons who distribute and collect the sales proceeds with two wheelers and mobile phone were required. Which should have cost not less than ₹ 30,000/- per month. During the year I have handled the sale with shares shop (up to 8AM) by paying rent of only ₹ 12,000/- for the entire year and completed the work within time. By cutting the expenses in rent and other misc ways I have passed the major portion of the margin. In it the supplier/ vender used to lift milk from my point of rendering cash and empty crates to me at my place of work before no entry time for commercial vehicle. It was a laborious and tedious task. Fur such sale at least independent shop of 100 sq.ft. was required ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r persons were on plain paper, no PAN of any of these persons was mentioned in the confirmation, no details of as to how much quantity of products had been purchased by them from the appellant is mentioned nor any date of purchase is mentioned. Therefore, confirmations filed by the appellant are not reliable and have rightly been rejected by the AO. Moreover no books of accounts were produced before the AO in spite of specific requisition in this regard on four occasions as mentioned in the preceding paragraphs. 13. Keeping in view all these facts, it is held that books accounts of the appellant have rightly been rejected by the AO and the Gross Profit rate of ₹ 4.80 per crate has rightly been applied by the AO to the appellant s sales. Therefore, the addition of ₹ 6,26,631/- made on this account is confirmed. 8. Aggrieved by the aforesaid order of the ld CIT(A), the assessee is before us. 9. The ld AR, reiterated the submission before the lower authorities and assailed the findings of the ld CIT(A) and pleads that the impugned order may be set-aside. On the other hand the ld DR, supported the order of the ld CIT(A). 10. We have heard both the parties and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eclared by the assessee, in the light of the explanation tendered before us. Therefore the impugned order is set-aside and the AO is directed to re-examine the matter as directed above. Needless to say that the AO must give adequate opportunity to the assessee before deciding the issue and the assessee is given liberty to adduce evidences in support of its contention. 13. Apropos ground No. 3 addition of ₹ 1,80,112/- in respect of incentive received and not declared by the assessee. 14. Brief facts of the case is that the AO has made the addition on the basis of entries found in the ledger accounts of M/s. Gujarat Co-operative Milk Federation, which revealed that the assessee has received an incentive of ₹ 1,80,112/- which was not duly reflected in the books of account of the assessee and therefore he made the impugned addition to the income of the assessee. 15. The ld CIT(A) has confirmed the addition by holding as under:- 14. With regard to the incentive of ₹ 1,80,112/-, the same was admittedly received by the appellant and was not shown in the profit and loss account. The explanation of the appellant in this regard that the incentive had been passe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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