9911796707
TMI Blog2012 (4) TMI 649X X X X Extracts X X X X X X X X Extracts X X X X ..... er considering the totality of facts and the circumstances of the case and after going through the order of the CIT (A) in the instant case, we find the CIT (A) is perfectly justified in allowing the claims of the assessee. - ITA Nos. 2107 to 2113/Hyd/ 2011 - - - Dated:- 4-4-2012 - SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER AND SHRI SAKTIJIT DEY, JUDICIAL MEMBER For the Petitioner : Sri V. Srinivas For the Respondent : Sri Sai Prasad ORDER PER SAKTIJIT DEY, J.M. These are seven appeals by the Revenue directed against the common order dated 24-10-2011 in the case of same assessee-respondent passed in ITA Nos. 1118 to 1124/DCIT CC-4/CIT (A)-VII/2010-11 pertaining to the assessment years 2003-04 to 2009-10. The as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f accounts which the AO disclaimed and without allowing the AO one more opportunity to scrutinize the books of accounts during the appellate proceedings. 3. The CIT (A) has accepted the trading results of the assessee wherein he has reflected loss/nominal income from trading in pearls without any verification being done by the AO or by the CIT (A) himself. 4. Briefly, the facts of the case are that the assessee is a company, involved in the business of trading in pearls and jewellery, has filed the return of income for the assessment year 2003-04 on 1-11-2004 admitting an income of Rs. Nil. A search and seizure operation under section 132 of the I T Act, 1961 was conducted at the business premises of the assessee on 30-3-2009 as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... DR while supporting the order of the Assessing Officer submitted that the CIT (A) is not justified in allowing the claim of the assessee because the assessee has not submitted books of accounts for verification of the AO at the time of assessment and the turnover of the assessee was shown at a lower figure and return of income was shown at Nil. This is not acceptable in the business of pearls because profit margin is very high. It is further submitted that the CIT (A) is not justified in relying solely on a general letter dated 9-12- 2010 filed by the assessee and he is wrong in accepting the trading results of the assessee wherein he has reflected loss/nominal income from trading in pearls without any verification being done by the AO or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that it is not correct on the part of the AO to abruptly come to a conclusion that since the assessee did not produce books of account, book results cannot be accepted. When the assessee maintains books of accounts in regular course of business, they cannot be rejected on conjecture and surmise. As the CIT (A) has observed the AO has ample scope and power to enquire and find out regarding the maintenance of the books of accounts or otherwise by the assessee. We also find that estimation of profit resorted to by the AO at the rate of 68% is also without any reasonable basis. More so, this is the assessment under section 153C of the Act consequent to search action u/s 132 of the Act.. The case records reveal that no incriminating material wa ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
