9911796707
TMI Blog2017 (2) TMI 683X X X X Extracts X X X X X X X X Extracts X X X X ..... not considered these aspects at all, who have ignored them and have, therefore, deleted the addition. As referred by revenue case of Izhar International vs. Deputy Commissioner of Income-tax (2013 (7) TMI 810 - ALLAHABAD HIGH COURT) and Shri Venkteshwar Sugar Mills vs. Commissioner of Income-tax (Appeals) (2012 (1) TMI 81 - ALLAHABAD HIGH COURT) to substantiate his point that where the books of account were not properly maintained and the vouchers pertaining to the consumable items were not available for verification, then there is no option before the assessing officer except to make estimation on the basis of best judgment and also it would be open to him to make addition if amounts are so found against the assessee. - Decided in favou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... st of construction as estimated by the DVO and as declared by the assessee. The assessing officer has referred the cost of construction of building to valuation officer where the assessee has failed to produce its account books despite being given various opportunities. Thereafter, the notice was issued to the assessee on 12.08.2011 for producing its books of account on 29.08.2011. The assessee failed to produce the account books on 29.08.2011, hence the assessing officer made the reference to the DVO on 09.09.2011. The DVO has submitted its report on 20.12.2011, upon which the objections were filed by the assessee on 26.12.2011 which were rejected on 28.12.2011. Till the date of passing of the assessment order on 29.12.2011, complete ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6% as disclosed by the assessee after rejecting the account books. For ready reference the paragraphs no.4, 7, 8 9 of the assessment order are quoted here-under:- 4. At the outset it will be relevant to mention that assessee never produced all the books of accounts on any single date of hearing either on one pretext or other protext. Only in piece meal on some days representatives of the assessee produced some books of account which always resulted in incomplete verification of accounts, bills, vouchers and entries made in the balance sheet. So assessee group was hesitant in producing all the books of accounts and bills and vouchers. Perusal of whatever books of accounts produced and examined at this end reflected that books of ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e. Consequently books of accounts of the assessee company are not reliable and the same are being rejected accordingly. 9. In the year under consideration gross profit of the assessee company have come down substantially without any reasonable cause. On this score assessee was confronted vide para (xvi) of notice u/s 142 (1) dated 12-08-11. For ready ready reference said para of notice is being reproduced below:- xvi During the year under consideration as per para 32 of tax audit report net profit% has been shown at 15.94% in comparison to 20.31% in AY 08-09. Further as per annexure 1 of the audit report for the year under consideration gross profit rate of the assessee company is 30.18% in comparison to 35.66% in AY 08-09 a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hown in Annexure A of audit report is being reproduced below:- FY Gross receipt as per Annexure A of audit report in Rs. Gross profit as per annexure A in Rs Gross profit% 08-09 201877562/- 60941757/- 30.18% 08-07 216886562/- 77354462/- 35.66% 07-06 194333086/- 68113843/- 35.05% In the light of said facts purchases and consumption of raw material of the assessee is not verifiable. Assessee has suppressed its sales and inf ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... From a reading of these paragraphs it is apparent that full particulars and details were never supplied by the assessee. The assessing officer, therefore, made an addition. The CIT and Tribunal have not considered these aspects at all, who have ignored them and have, therefore, deleted the addition. Learned Counsel for the department, Sri Shubham Agrawal has relied on two decisions of this Court in the case of Izhar International vs. Deputy Commissioner of Income-tax reported in (2013) 40 taxman.com 452 (Allahabad) and in the case of Shri Venkteshwar Sugar Mills vs. Commissioner of Income-tax (Appeals) reported in (2012) 20 taxman.com 650 (Allahabad) to substantiate his point that where the books of account were not properly maintain ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
