9911796707
TMI Blog2015 (11) TMI 74X X X X Extracts X X X X X X X X Extracts X X X X ..... "Whether on the facts and in the circumstances of the case and in law, the Tribunal erred in confirming the action of the respondent in rejecting the book results of the appellant u/s. 143(3) of the Act and/or in estimating total income of the appellant at Rs. 9,10,716/-?". 3. The Assessing Officer had originally passed an order dated 30th December, 2004 under Section 143(3) of the Act, assessing the Appellant-Assessee to total income of Rs. 14,244/-. The Commissioner of Income Tax in exercise of its power for revision under Section 263 of the Act by order dated 27th March, 2006 set aside the assessment order dated 30th December, 2004 passed by the Assessing Officer by, inter alia, observing as under: "The facts and circumstances of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... act its voluntary declaration of additional income made during survey. As mentioned earlier, the assessee has shown an income of only Rs. 14,244/- in its return filed on 31.10.2002. If the assessee is to be believed then, that amounts to assessee having suffered a loss of Rs. 7,85,756/- during a period of last 2 ½ months i.e. from date of survey 17.01.2002 to 31.03.2002. It is surprising that if the assessee was suffering such huge losses during the year, he did neither mention it to the surveying officer nor gave even an inkling of the same even though the survey was conducted at the closing of the year i.e. after 9 ½ months of the financial year had passed. The fact of the matter is that the assessee has casted it's Prof ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... As a consequence of the above order dated 27th March, 2006, the Assessing Officer passed a fresh assessment order dated 6th December, 2006 under Section 143(3) r/w. Section 263 of the Act. In the assessment order, the Assessing Officer rejected the books of account under Section 145 of the Act and passed a fresh assessment order, inter alia,determining the Appellant-Assessee's total income at Rs. 9.11 lakhs. The Assessing Officer rejected the books of account, inter alia, on the ground that the Gross Profit (GP) rate declared by the RespondentRevenue for the subject assessment year was only 20.35% as against the rate of 34.73% declared in the immediately preceding year. A survey action was carried out on the Appellant on 17th January, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the impugned order held that the books of account were rejected, inter alia, on account of low GP rate shown by the assessee in the year under consideration as compared to the immediately preceding year. Besides, the verification carried out as per the directions given by the CIT(A) in his order under Section 263 of the Act, the Assessing Officer found that GP rate for post survey period i.e. 17th January, 2002 was very low. It was also noted that the frames were sold by the Appellant-Assessee post survey at a price ranging between Rs. 6 to Rs. 10 as against their cost ranging to Rs. 650/- to Rs. 850/- per frame. The explanation offered by the Appellant-Assessee that the low price at which they were sold was because they were damaged o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is not factually correct. In particular, the statement therein that the assessee had so cast its Profit and Loss Account so as to effectively neutralize itself from its commitment to offer an additional income of Rs. 8 lakhs to tax as declared during the survey. In the above view, it is his contention that the appeal be admitted. 8. We find that there was sufficient material available on record for the Assessing Officer to reach the conclusion that the books of account as produced by the Respondent Assessee were not reliable. The rejection of books of account were on account of cumulative factors such as the Respondent Assessee not being able to give the names and addresses of the persons who purchased the frames in cash. The fall in the ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
