9911796707
TMI Blog2015 (9) TMI 158X X X X Extracts X X X X X X X X Extracts X X X X ..... be prepared – AO enhanced turnover principally on basis that Assessee had failed to produce Trading Account – Also turnover was increased on basis of excess stock allegedly found at premises of Assessee, AO has not indicated as to how excess stock would affect declared turnover – While making best judgment assessment, AO did not examine records pertaining to commission received/receivable by Assessee – Assessment Order does not indicate any basis for AO to enhance turnover by 10% – Matter remanded to AO to decide afresh in accordance with law – Decided in favour of Assesse. - ST APPL No. 32/2014 - - - Dated:- 21-7-2015 - S. Muralidhar And Vibhu Bakhru, JJ. For the Appellants : Ms Prem Lata Bansal, Sr. Adv. with Mr Ruchir Bhatia, Adv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the Assessee was unable to properly explain the said papers. 2.3 The AO passed the assessment order dated 4th February, 2000 in respect of the assessment year 1996-97. The AO held that the Assessee was confronted with the papers seized by the enforcement branch during the survey and the Assessee could not properly explain the same. The AO held that two challans, being challan no. 1435 dated 1st October, 1996 and challan No. 1439 dated 1st October, 1996, showing sale of goods to certain dealers could not be explained as the Assessee had neither produced the relevant sale records nor entered the sales reflected in the said challans in the sales tax account registers. However, other bills in the challan book had been duly verified from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d with the said challans on the last date of hearing and as such did not have any opportunity to reconcile the said challans with the sales. In respect of the finding that the Assessee had not produced the trading account, it was contended by the Assessee that since sales were made on behalf of its principal, trading account was not maintained. In addition, the Assessee urged that it had produced the books relating to the stocks received from its principal and the Assessee was not confronted with any document indicating variation in stocks and the AO had not pointed out any discrepancy in the assessment order. The Assessee also contested the finding that there was excess stock of ₹ 2.49 lacs at Patparganj or there was any variation in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lanation has also not been considered by the AO. 4. A plain reading of the order of the FAA and the Tribunal indicates that the Assessee s contentions have not been considered. The Assessee has annexed a statement (as Annexure 5 to the present appeal) which briefly indicates the findings/observations of the AO and the petitioner s challenge to the same. The short order passed by FAA does not consider any of the Assessee s contentions. Further, there is sufficient merit in the Assessee s contention that none of the orders disclose any specific material on the basis of which adverse findings have been returned against the Assessee. 5. Clearly, the two challans amounting to ₹ 1, 250/- cannot be the basis for rejecting the Assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssumes material significance as the stocks are received on consignment and are not subject to levy of taxes and the AO had not found any incidents on undeclared and unrecorded sales, which could possible lead the AO to infer that sales reflected by the Assessee were understated and the actual sales were in excess of the sales declared. 7. It is not disputed that the Assessee is entitled to a commission on the sales effected by it on behalf of its principal. However, while making the best judgment assessment, the AO did not examine the records pertaining to the commission received/receivable by the Assessee. It is difficult to ascertain the basis for increasing the taxable turnover by ₹ 2.5 crores (i.e. 10%). Whilst it is not disput ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
