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TMI Blog2017 (6) TMI 2X X X X Extracts X X X X X X X X Extracts X X X X ..... im. It is clear that AO has not properly appreciated the evidence filed before him. We found that CIT(A) has also not dealt with the issue on merit and has just relied on the findings of the AO without addressing the reply filed by the assessee and without considering the documentary evidence in support of the same. In the interest of justice and fair play, we set aside both the orders of the lower authorities and restore the matter back to the file of the AO for deciding afresh after considering the documentary evidence filed in support of the short comings pointed by him which was produced by learned AR during the course of hearing before us as well as before the CIT(A) during the appellate proceedings. Appeal of the assessee is all ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in estimating the income of the appellant on rejection of books of accounts. The Learned Commissioner of Income Tax (Appeals) has ignored the evidences and the proof produced before him and also has over looked the provisions of law under which even on rejection of the books of accounts the income has to be determined based on the facts of the case. 4. On the facts circumstances of the case the Learned Commissioner of Income Tax (Appeals) has erred in confirming the estimation of the gross profit at ₹ 1,21,17,168/- as against gross profit disclosed at Rs,46,90, 710/-. The appellant prays that the addition made by the Learned Assessing Officer and confirmed by Learned Commissioner of Income Tex (Appeals) may be deleted. 5. On t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lant craves leave to add, alter or amend the grounds of appeal which are without prejudice to one other. 3. Rival contentions have been heard and record perused. 4. The brief facts of the case are that the assessee is a trader in purchase, import, and sales of metal scrap. The assessee e-filed its Return of Income declaring total income at ₹ 2,23,291/- on 28.09.2012. The AO while passing the assessment order estimated a Gross Profit on sales at ₹ 1,21,17,168/- as against the declared Gross Profit at ₹ 46,90,710/-. The income of the assessee was assessed at ₹ 74,26,460/- as against the returned income of ₹ 2,23,291/-. While completing the assessment order, the AO has elaborately noted the instances of reje ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gross profit @10% of turnover. As per learned AR, the assessee maintained regular books of account which are audited by the Statutory Auditors. The assessee has also got its accounts audited u/s 44AB of Income Tax Act, 1961. The quantitative summary of the items traded is also given alongwith the return of income and also was filed during the course of assessment proceedings. As per learned AR the only reason on which he has come to conclusion that books of account needs to be rejected is that the assessee has not satisfactorily explained the shortage of the goods. Please note that as per the correct working the total value of the shortage of the good is ₹ 8,32,710/-. 8. It was further contended by learned AR that the gross profit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... kg., not found recorded in the import register. 11. Learned AR has drawn our attention to page 403A of the paper book, there was an entry for purchase of 53,410 kg. appearing at Sr. No.2. As per learned AR, total purchases of import on high seas basis is of ₹ 36,85,908/- which is reflected on page No.401 of paper book. Our attention was also drawn to the break-up of such purchases as contained at page 403A of the paper book wherein purchase of 53,410 kg was reflected at para 23 of the assessment order. 12. AO in his order has alleged that in respect of three items, customs duty is not reflected in the statement. Contention of learned AR was that the imports referred by the AO are at Sr. No.7,15 and 19. These are the imports made ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... order, the Assessing Officer has also referred to notice issued u/s 133(6) to Shri Devichand Pragaji Oswal and M/s. Aakash Metals and also has stated that no reply has been received from both these parties. Learned AR invited our attention to the reply filed by the assessee vide letter dated 28/03/2015 which was alleged by learned AR for having not been considered by AO. Contention of learned AR was that the assessee has a regular transaction with both the parties and the copy of the account of said parties are also filed with the paper book. The Assessing Officer has also touched upon the wastage and has taken certain figures of the wastage. The contention of learned AR was that assessee has dealt in 8 types of scraps. The total quantity d ..... X X X X Extracts X X X X X X X X Extracts X X X X
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