9911796707
TMI Blog2015 (10) TMI 740X X X X Extracts X X X X X X X X Extracts X X X X ..... Hon'ble Rajasthan High Court. As regards the first ground of the assessee for not providing opportunity of cross examination, we find that this issue has not been seriously argued by the ld. AR of the assessee. However, the Bench has offered to allow cross examination by setting aside the orders of the lower authorities. The facts as available on records that the assessee was directed to produce the parties for verification by the AO but the assessee showed inability to produce the parties. The AO sent his Circle Inspector to verify the facts about the existence of the parties but they were not found at the given addresses. Therefore, the assessee has not discharged its onus to prove the purchases debited in profit and loss account as genu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in law, the ld. CIT(A) has erred in confirming the action of the ld. AO in rejecting the books of account of the assessee by invoking the provisions of Section 145(3) and thereafter making a trading addition of ₹ 1,22,500/-. The action of the ld. CIT(A) is illegal, unjustified, arbitrary and against the facts of the case. Relief may please be granted by quashing the rejection of books of account and deleting the trading addition of ₹ 1,22,500/- made by the AO is confirmed.'' 2. Brief facts of the case are that the assessee company is engaged in the business of manufacturing and trading of gold jewellery studded with Diamond and Colour Stones. A survey u/s 133A of the Act was carried out at the business premises of the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... de efforts to enquire about these parties about the genuineness of the purchases but no party was found at the existing address and the inspector of the concerned circle confirmed that no such business concerns exists at the given address. 3. The AO observed that books of the assessee are not reliable and true profits could not be deduced from them and he has no option except to estimate the true income of the assessee. The AO found from the records that the assessee has arranged bogus bills worth ₹ 4,90,000/- from the above two concerns and genuineness of the purchases worth ₹ 4,90,000/- could not be established by the assessee. Thus considering all these facts and circumstances of the case, the gross profit was estimated by t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... liable for rejection. In view of the foregoing, the rejection of books of account by the AO is held to be justified and is sustained. This part of ground of appeal, therefore, fails. As regards bogus purchases, the assessee has claimed purchases from the parties mentioned in succeeding para and these parties are unverifiable. During the appeal proceedings, the A/R could not controvert the finding of the AO. The plea of the A/R that the GP has increased 45.47% to 49.30% is not tenable because the assessee is regularly obtaining bogus bill for purchases and thereby decreasing its gross profit. Hence in view of these facts and circumstances of the case, the trading addition made by the AO of ₹ 1,22,500/- is therefore, confirmed.'' 5. N ..... X X X X Extracts X X X X X X X X Extracts X X X X
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