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TMI Blog2018 (3) TMI 1344X X X X Extracts X X X X X X X X Extracts X X X X ..... de the orders of the authorities below in respect of levy of penalty under section 271(1)(c). - Decided in favour of revenue for statistical purposes. X X X X Extracts X X X X X X X X Extracts X X X X ..... ember, 2017 in ITA No. 504/JP/2013 in para 5 as under :- "5. We have considered the rival submissions as well as relevant material on record. At the outset, we note that an identical issue has been considered and decided by this Tribunal in case of ACIT vs. M/s Allied Gems Corporation vide order dated 15.12.2017 in ITA No. 794/JP/2011 and CO No. 76/JP/2011 and has held in paras 5 and 8 as under:- 5. We have considered the rival submissions as well as relevant material on record. The Assessing Officer rejected the books of account by invoking the provisions of section 145(3). The issue of rejection of books of accounts is involved in the cross objection filed by the assessee, therefore, we deal with this issue while deciding the cross o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... easonable………………. …………………………………………………………… 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 cr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r the liability of trade creditors shown by the assessee in the absence of furnishing complete addresses of trade creditors/consignors and the payment vouchers was genuine or not." While evaluating the material collected by the Revenue on the touch stone on human probability and considering the accretion in the closing balance in respect of parties for which Revenue has material in thejform of statement. We fell that the ld. CIT(A) was reasonable in confirming the addition of ₹ 5.00 lacs. Hence both the grounds of assessee as well as Revenue are dismissed." We further noted that when the corresponding sale is not in dispute then the question is only regarding the correct amount of purchases and verification of the same. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... st history. Hence, the grounds raised in the Revenue appeals are rejected being without any substance or merits.--------------- --------------------------------------- 8. We have heard the ld. AR as well as ld. DR and considered the relevant material on record. We find that the assessee failed to substantiate the purchases recorded in the books of accounts and to that extent the purchases were not verifiable. The Assessing officer has also pointed that the inventory of closing stock has been valued on estimated basis as pointed out and specifically mentioned in the audit report and therefore, the assessee was not maintaining the stock register showing the quantity and qualitative details including the purity of the previous matters. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 do not find any error or illegality in the orders of the ld. CIT(A) qua this issue. Accordingly, the addition made by the authorities below on account of unverifiable purchases is restricted to GP rate addition to be computed by the AO on the basis of past history of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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