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TMI Blog2017 (3) TMI 662X X X X Extracts X X X X X X X X Extracts X X X X ..... . CIT(A) to the extent of ₹ 2.00 lacs appears to be on higher side in the present facts and circumstances of the case and the same is sustained to the extent of ₹ 50,000/-. Thus the Ground of the assessee is partly allowed. Disallowance of expenditure - Held that:- When the books of account are rejected and trading addition are made, there is no justification in making further adhoc disallowance qua telephone and conveyance. This view is supported by ITAT in assessee's own case for preceding year. Thus we direct to delete the addition of ₹ 27,585/- (being 10% of the total claim) sustained by the ld. CIT(A). - Decided in favour of assessee - ITA No. 39/JP/2017 - - - Dated:- 3-3-2017 - Shri Bhagchand, Accountant Membe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ppellate authorities including the Hon'ble ITAT in assessment years 2007-08, 2008-09 2009-10 as discussed in detail in the order of the Assessing Officer. Thus the trading results of the assessee had not been accepted in the past also and the books of account had been rejected u/s 145(3) and the same had been upheld in appeal. Based on the above, the Assessing Officer rejected the books of accounts u/s 145(3) of the I.T. Act, 1961 and made a lump sum trading addition of ₹ 3,00,000/- for reasons discussed. In the present proceedings, the Authorised Representative submitted that since in the current year the profit percentage is better than the previous year, no trading addition should be made. As already discussed, the assessee i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2565918 10.82% 2011-12 21698393 2342751 10.80% During the course of assessment proceedings, the AO observed that the assessee had not maintained the stock register or the quantitative details of opening and closing stock. He also observed that the in the Tax Audit Report in Column 28(a) the Auditors has commented that Not maintained looking to the size and nature of the business, inventory of closing stock taken by proprietor at the end of the financial year. The AO asked the reason from the assessee for not maintaining the books of account and stock register for which the assessee simply contended that in assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng stock, purchases sales and closing stock of the assessee are not verifiable. Thus the lower authorities are justified in rejecting the books of account of the assessee by invoking the provisions of Section 145(3) of the Act but the addition sustained by the ld. CIT(A) to the extent of ₹ 2.00 lacs appears to be on higher side in the present facts and circumstances of the case and the same is sustained to the extent of ₹ 50,000/-. Thus the Ground No. 1 of the assessee is partly allowed. 2.3.1 As regards, the Ground No. 2 of the assessee, it is noted that the AO during the course of assessment proceedings observed that assessee had claimed telephone expenses of ₹ 72,152/-, conveyance expenses of ₹ 69,100/-, repa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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