9911796707
TMI Blog2018 (6) TMI 1103X X X X Extracts X X X X X X X X Extracts X X X X ..... Act. Therefore there was no reason for the AO to estimate the profit after rejecting the books of accounts. AO has taken the guidance from the provisions of section 44AD in adopting the rate @ 8% for determining the profit of the assessee which is not correct as it applies to the small assessee having turnover up to ₹ 1 crore - Decided against revenue - I.T.A. No. 384/Rjt/2015 - - - Dated:- 20-6-2018 - Shri Waseem Ahmed, Accountant Member And Shri Mahavir Prasad, Judicial Member Appellant by : Shri Arvind N. Sontakke, Sr.D.R. Respondent by : Shri D. S. Sodha, A.R. ORDER Per Waseem Ahmed, Accountant Member The captioned appeal has been filed at the instance of the revenue against the order of the Commissioner of Income Tax(Appeal)-Jamnagar [CIT(A) in short] vide appeal no. CIT(A)-Jam/280/14-15 dated 25.06.2015 arising in the assessment order passed under s.143(3) of the Income Tax Act, 1961 (here in after referred 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 holdi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 observed that assessee had declared its net profit for the year under consideration @1.02% of the turnover which in his opinion was quite low as per the prevailing market rate. In view of above, the AO issued show-cause notice vide dated 19.03.2015 for rejecting the books of accounts u/s 145(3) of the Act and estimate the net profit/income @ 8% of the gross receipts. In compliance with it, the assessee furnished the details of the challan containing the name of the Drivers, Truck number, weight, and destination, etc on a sample basis. The assessee has also filed the copies of the statement issued by the Ultratech Cement Ltd. to it containing the details of the goods, Truck numbers, weight, etc to justify the transportation charges. The assessee also submitted that the opportunity o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on of the appellant that the grounds taken by the AO for rejection of books of account are not justifiable. Comparison of profit ratio of the appellant firm with the other firm in the same line of business is not a ground for rejection of books of accounts. Also the AO failed to point out any defect on method of accounting or any inherent defects in books of accounts. Further the AO has passed the order without giving the appellant opportunity to cross examine the parties from whom information obtained u/s. 133(6) of the Act, it is against the principal of nature justice and 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rejecting books of account where Assessing Officer has no corroborative material on record to reach to conclusion that sale price of those cash bills were lower than sale price of credit sales bills, in respect of which full names and addresses of buyers were written - Held, yes We also rely on the judgment of Delhi High Court in the case of Smt. Poonam Rani reported in 326 ITR 223, wherein, it was held as under: The Assessing Officer had not pointed out any particular defect or discrepancy in the account books maintained by the assessee. During the course of hearing before the Commissioner (Appeals), it was pointed out by the assessee that her account books were duly audited under section 44AB of the Central Excise Act and the quantitative details as required by clause 28(b) of Form No. 3CD regarding raw material and finished products (i.e., opening stock of raw material, raw material issued to production department, raw material consumed and closing stock of raw material, opening stock of finished goods, finished goods produced during the year, finished goods sold and closing stock of finished goods) were prepared and audited by certified accountant and were enclosed wi ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
