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TMI Blog2015 (8) TMI 459X X X X Extracts X X X X X X X X Extracts X X X X ..... tion for Income from business of the appellant is contrary to law and the facts of the case. 2. On the facts brought on records the learned Commissioner of Income Tax (Appeals) ought to have held that the suppressed Interest should reduced by Rs. 50756/, which is relevant to the next financial year. 3. The appellant craves leave to add or amend any ground of appeal. There is delay of 163 days in filing the appeal. It is sated, in the application filed for condoning the delay, that the Authorised Representative(AR) was hospitalised for a very long time, that he could not attend tax matters of the assessee. The application is accompanied by the letter of the AR and the medical certificates. Considering the facts of the case and the medical ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e were returned unserved with postal remark Not Known, that the AR of the assessee was expressed his inability to file the specific address of the creditors/suppliers. Considering these facts, the AO held that the identity of the suppliers as well as the genuineness of the purchase was not ascertainable. He further observed that no purchase register containing the names/addresses of the sellers nor the stock book nor any Wage Register for payment of the wages were maintained by the assessee. He found that the books of account were also not complete. On examination of the bank statement it was seen that numerous debit had been made in the Bank account by self cheque. Xerox copy of both sides of the cheques were collected from the Bank u/s. 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ded that the assessee had suppressed it's GP rate. He estimated the Gross Profit of the assessee at Rs. 27,18,868/- %7.37% of the turnover of Rs. 3,68,91,02/-. 2.1 Aggrieved by the order of the AO, the assessee preferred an appeal before the First Appeal Authority(FAA). Before him it was argued that purchase price depended upon various factors such as suppliers, seasonal rate, cash purchase discount, quality of bamboo, demand with supply ratio, advance deposit with the suppliers, advance payment to the suppliers etc., that the assessee was having maximum cash purchase during the preceding previous year, that he had purchased the bamboo on credit Rs. 43,02,523/- in the relevant financial year compared to preceding financial year, that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ok was defective and not reliable, that it did not reflect the withdrawals from the bank and disbursement of cash payments truly, that he rightly rejected the books of account as the books of account were not complete and correct. Regarding the rate of GP, the FAA held that the contention of the assessee that GP was low because of credit purchase was without any basis, that the sundry creditors were not found to be genuine, that purchase register or stock register was not maintained, that the assessee could not give the specific address of the suppliers and sundry creditors, that notice u/s. 133(6) issued to sundry creditors/suppliers returned unserved with the postal remark not known, that assessee was unable to furnish specific address o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... NCE NO. 12 OF 1990 Dated:- 07-02-1995 GAUHATI HIGH COURT) Pandit Bros. v. CIT [1954] 26 ITR 159 (Punj. & Har.), B.K. Mohan Nair [IT Appeal/1644/Ahd/2010]. Departmental Representative (DR) supported the order of the FAA. 2.3 We have heard the rival submissions and perused the material before us. We find that the assessee AO found that the books of account were not reliable. It is a fact that payment of more than 3 Crores were made in cash that details of nature of purchases quantity of purchases or name of suppliers were not supplied before the AO or FAA mentioned in the ledger, that assessee could not produce any vouchers in support of the expenses he had claimed. It is not the case that the AO had made GP addition without any basis. He ha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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