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TMI Blog2018 (3) TMI 1463X X X X Extracts X X X X X X X X Extracts X X X X ..... ith the assessee. The assessee had admittedly computerized books of account in September, 2012 in which the loss has been worked out to ₹ 15,32,732/-. The auditor has signed the said accounts on 28.09.2012 i.e. much after the due date of signing and filing the audit report for the year ending 31.03.2010. Such book results shown by the assessee cannot be relied to compute the income in the hands of assessee. Accordingly, we uphold the order of CIT(A) in applying the GP rate to determine the income in the hands of assessee. The provisions of section 145 of the Act are squarely attracted. However, we direct the Assessing Officer to apply GP rate at 1% on the total turnover of ₹ 11.83 crores in order to determine the income in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of grains, pulses and allied agricultural activities. The assessee was a Private Limited Company, which comprised of four Directors. For the year under consideration, the assessee had furnished return of income declaring loss of (-) ₹ 15,32,732/-. The Assessing Officer however, in the assessment order mentions that the assessee had not filed any return of income and has taken the net profit at Nil. The case of assessee was selected for scrutiny. However, during the course of assessment proceedings, the Assessing Officer noted that books of account had defects. Further, the Assessing Officer also observes that no circumstantial evidence for movement of goods with regard to purchase and sales was available. Further, the assessee did not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... addition to ₹ 23,66,735/-. 6. The assessee is in appeal against the order of CIT(A). 7. The learned Authorized Representative for the assessee pointed out that this was the first year of operations of assessee and because of non-experience, there was loss in the case of assessee. He further pointed out that the accounts of assessee were audited and the audit report was filed during the course of assessment proceedings. Our attention was drawn to the Profit and Loss Account placed at page 18 of Paper Book. He further invited attention to the expenses claimed and stressed that the perusal of the same would reflect that major expenditure was on account of raw material consumed / purchased for re-sale. In this regard, he stated tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... account from purchase, sale bills, vouchers, bank statement and appointed CA Chetan Gattani for audit of books of account and obtained audit report. All these facts are mentioned in the statement of facts. Further, during the course of assessment proceedings, the Assessing Officer notes that the assessee had attended the hearing on 20.02.2015 along with the Accountant of assessee and produced incomplete books of account. Further, the Assessing Officer notes that no circumstantial evidence for movement of goods in regard to purchase and sale was available and also no purchase and sale bills were produced for verification. The assessee was also asked to give preliminary evidences of two trading accounts in which substantial expenses were debi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ven the books of account evidencing the same were not available with the assessee. On the other hand, the assessee had admittedly computerized books of account in September, 2012 in which the loss has been worked out to ₹ 15,32,732/-. The auditor has signed the said accounts on 28.09.2012 i.e. much after the due date of signing and filing the audit report for the year ending 31.03.2010. Such book results shown by the assessee cannot be relied to compute the income in the hands of assessee. Accordingly, we uphold the order of CIT(A) in applying the GP rate to determine the income in the hands of assessee. The provisions of section 145 of the Act are squarely attracted. However, we direct the Assessing Officer to apply GP rate at 1% on ..... X X X X Extracts X X X X X X X X Extracts X X X X
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