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TMI Blog2018 (2) TMI 1705X X X X Extracts X X X X X X X X Extracts X X X X ..... R PER: VIJAY PAL RAO, J.M. This appeal by the assessee is directed against the order dated 06.05.2015 of ld. CIT (A), Jaipur for A.Y. 2009-10. The assessee has raised the following grounds:- 1. The Ld. CITA) has erred on fact and in law in dismissing the appeal of the assessee for non appearance without providing adequate opportunity of hearing to the assessee. 2. The ld. CIT(A) has erred on fact and in law in not deciding the following ground of appeal raised before him on merit: ( i) The AO has erred in rejecting the books of accounts by applying provisions of section 145(3) ( ii) The AO has erred in making trading addition of ₹ 14,97,088/- by disallowing 25% of alleged unverifiable purchases of ₹ 59,88,350/- 2.1The ld. CIT(A) has erred on facts and in law in even not following the decision of Hon ble ITAT given in various cases where purchases are held to be unverifiable while dismissing the appeal of assessee for non-appearance. 3. The assessee craves rights to add, alter or amend any of the grounds of the appeal. 4. The appropriate cost be awarded to the assessee. 2. Earlier the appeal of the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der consideration the assessee has reported the gross profit on the total turnover of ₹ 2.10 Crores @ 14.50% as against GP @ 14.02% on the sale of ₹ 1.54 Crores for the assessment year 2008-09 and 13.99% on the total turnover of ₹ 2.02 Crores for the assessment year 2007-08. Thus the GP declared by the assessee during the year under consideration is more than the GP of the past years despite the fact that the turnover for the year under consideration is more than turnover of the earlier years. This ld. AR of the assessee has submitted that even if the books of accounts are rejected by the AO no addition is called for when the gross profit declared by the assessee for the year under consideration is more the past G.P. 5. On the other hand, ld. DR has relied upon the orders of the authorities below and submitted that when the assessee has failed to discharge its onus to prove the genuineness of the purchases then, the Assessing Officer while making a disallowance of 25% of such purchases has taken a very lenient view. He has thus contended that disallowance made by the AO be confirmed. 6. We have considered the rival submissions as well as relevant material on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ain concerns for which Revenue got evidence in the form of statement recorded in respect of such parties, opening balance is ₹ 37,06,175/- while the closing balance is ₹ 42,81,496/-. It means that there is an accretion of amount of ₹ 5.75/- lacs. It means that to this extent, accretion in purchase is without supporting the correct bills. Of course, total openting balance of all parties is ₹ 1,15,43,782/- and the closing balance is ₹ 1,33,36,193/-. However, looking to the accretion in the closing balance of the concerns for which Revenue has material, the addition confirmed by the ld. CIT(A) is reasonable . 2.30 The Hon ble P H High Court in the case of Uplakesh Metal Industrial V CIT 177 taxman 298 held that issue decided by this is in the realm of appreciation evidence. The find of Tribunal as mentioned in this judgment is as under:- However, in our opinion the observation of the Assessing Officer that the assessee was prima facie required to prove the genuineness of the transaction and identity of the creditors is not misplaced because there is no distinction laid between the trade creditor and the non ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inflated the purchases upto 25% and therefore, it was not a case of non verification of the purchase and rejection of books of accounts but the fact was established in the investigation that the assessee inflated the purchase price and accordingly the addition of 25% being inflated purchases was made and upheld by the Tribunal which was again upheld by the Hon ble High Court. On the contrary in the case of the assessee the AO not given any finding of inflated purchases by the assessee but doubted the very transaction of purchases due to non production of these parties before the AO. The AO has not given the finding that the prices of the goods was inflated by the assessee but the AO doubted the genuineness of the purchases on the ground that the suppliers were found to be accommodation entries providers. When the AO rejected the book results u/s 145(3) of the Act, then the AO after rejection of the books of account can proceed to make the assessment on the basis of best judgment instead of resorting make the addition to the book results. Accordingly, in the facts and circumstances of the case and in view of the decision of this Tribunal in assessee s own case for A.Y. 2006-07 we d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of books of accounts by the AO. The ld. CIT(A) has dealt with this issue in para 4.3 as under - 4.3 I have carefully perused the order of the AO and the extensive submissions of the AR. The most pertinent point in the case of the assessee is that the Hon ble ITAT, Jaipur Bench has already adjudicated in identical facts in the case of the assessee for A.Y. 2006-07 vide its order ITA No. 603/JP/2010 dated 10.06.2011. Similar disallowances were made by the AO under similar facts and circumstances as are involved in the appellant s present appeal for A.Y. 2005-06. On perusal of the same I find that the Hon ble ITAT Jaipur in the appellant s case for A.Y. 2006- 07 based on a detailed discussion from pages 2 to 9 has upheld the rejection of books of account by invoking the provisions of S. 145(3) in the case of the assessee due to unverifiable purchases. Therefore, as the facts and circumstances are the same in this year I uphold the decision of the AO to reject the books of accounts of the assessee and estimate his income. Thus, the ld. CIT(A) has decided this issue by following decision of this Tribunal in assessee s own case for the assessment year 2006-07. Hence, we d ..... X X X X Extracts X X X X X X X X Extracts X X X X
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