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TMI Blog2018 (6) TMI 1103X X X X Extracts X X X X X X X X Extracts X X X X ..... to as "the Act") dated 25.03.2015 relevant to Assessment Year (AY) 2012-13. 2. The grounds of appeal raised by the Revenue are as under:- "1. Whether, on facts and the circumstances of the case, the ld. CIT(A) was justified in holding that AO was unjustified in rejecting books of account of the assessee. 2. Whether, on facts and the circumstances of the case, the ld. CIT(A) was justified in deleting the addition made by AO on account of estimation of income. 3. On the basis of the facts and circumstances of the case, the learned CIT(A) ought to have upheld the order of the Assessing Officer. That the revenue craves leaves to add, amend, alter or withdraw any ground of appeal. It is therefore prayed that the order of the CIT( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the suppliers. Subsequently and accordingly the assessee used to raise the bills to Ultratech Cement Ltd. The assessee during the year has shown transportation expenses of Rs. 11,38,26,937/- against the gross receipts of transport charges from Ultratech Cement Ltd for Rs. 11,53,39,074/- in its trading and Profit & Loss account. The AO during the assessment proceedings to verify the veracity of transportation expenses issued to notices u/s 133(6) to some truck drivers ranging between 60 to 70 in numbers. However, most of the Truck owners/ drivers failed to respond to the notices issued to them. Some of the truck drivers denied to had any transaction with the assessee during the year under consideration. Besides the above, the AO also ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the truck owners were not furnished. Similarly, in most of the cases, there was no response of the notice issued u/s 133(6) of the Act to the truck drivers/ drivers. The AO also observed that the opportunity of cross-examination to the assessee with the truck drivers/ owners will be no significance and will only lead to the wastage of time as there are large numbers of truck drivers involved. Accordingly, the AO rejected the books of accounts and estimated the profit of the gross receipts @8%. Thus, the total income was determined by the at Rs. 92,27,130/- only. 5. Aggrieved, assessee preferred an appeal to learned CIT(A). The assessee before the learned CIT(A) submitted that it has produced all the books of accounts including bills, v ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... consequential addition is not tenable. Hence the addition made on this account is deleted." Being aggrieved by order of learned CIT(A) Revenue is in the second appeal before us. The learned DR before us vehemently supported the order of AO. On the other hand, the learned AR before us submitted that the opportunity of cross-examination was not given to the assessee with the truck drivers to whom notices were issued u/s 133(6) of the Act. The learned Counsel for the assessee also submitted that books of accounts were duly audited and no defect of whatsoever was pointed out by the AO and thus, the books of accounts were rejected on baseless grounds. The PAN of the truck owners were furnished during assessment proceedings, but the AO did n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ect unless there are strong and sufficient reasons to indicate that they are unreliable - Held, yes - Whether if revenue doubts correctness of gross profit declared by assessee, it first of all should reject assessee's books of account after satisfying mandatory requirement of section 145, which can be done only after pointing out a specific defect in books of account - Held, yes - Whether onus to make out a case for rejection of books of account is on revenue and, so, assessee cannot be burdened with responsibility of proving a negative aspect of matter and cannot be held responsible for not having earned profit at a particular rate - Held, yes - Whether non-supply of full name and address of buyers in case of cash sales cannot be a reason ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the assessee had furnished complete details, including quantitative details in respect of purchase of raw material, manufacture of copper wire and sale of the finished products. In those circumstances, the accounts maintained by the assessee could not have been said to be incomplete or inaccurate. In fact, the Assessing Officer had no material before him to treat the accounts of the assessee as defective or incomplete. In view of above, we hold that the AO erred in rejecting the books of accounts under the provisions of Section 145(3) of the Act. Therefore there was no reason for the AO to estimate the profit after rejecting the books of accounts. Even for the sake of arguments if it is assumed that the books of accounts were correct ..... X X X X Extracts X X X X X X X X Extracts X X X X
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