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TMI Blog2019 (11) TMI 693X X X X Extracts X X X X X X X X Extracts X X X X ..... basis. It is also not in dispute that the past history i.e. the GP/NP declared by the assessee is the proper and reasonable basis and guidance for estimation of income of the assessee for the year under consideration. Instead of making the assessment by considering the provisions of section 145(3) read with section 144, the AO has proceeded to make specific disallowance after rejection of books of account. This action of the AO is not permitted under law as the book results were rejected by the AO then the items which are part of the trading account cannot be disallowed but the income of the assessee was required to be estimated. The assessee has pointed out that the AO has not pointed out any decline in the GP rate of the assessee for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... PER VIJAY PAL RAO, JM : This appeal by the assessee is directed against the order dated 8TH November, 2017 of ld. CIT (Appeals), Kota for the assessment year 2010-11. The assessee has raised the following grounds of appeal :- 1. That on the facts, in the circumstances of the case and in view of the detailed written and oral submissions made and the evidence already available on AO s own record and further evidences adduced by the assessee the orders of the learned Lower Authorities are against the law and facts of the case. 2. That the ld. Assessing Officer has erred in making addition in the amount of ₹ 42,584/- of alleged difference in the transactions in the copies of a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd Nos. 2 3 are regarding additions made on account of difference in the closing balance on account of purchases in comparison to the assessee s account in the books of supplier as well as adhoc disallowance made by the AO on account of Coal and Fuel expenses. 3. I have heard the ld. Counsel for the assessee as well as the ld. D/R and considered the relevant material on record. The ld. Counsel has referred to the reconciliation of the differences in the closing balance as filed before the AO and further submitted that once the assessee has not claimed any excess amount on account of purchases, then a more balance shown by the assessee s supplier in its books of account will not be a ground for making any addition. As rega ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee for the year under consideration. Instead of making the assessment by considering the provisions of section 145(3) read with section 144, the AO has proceeded to make specific disallowance after rejection of books of account. This action of the AO is not permitted under law as the book results were rejected by the AO then the items which are part of the trading account cannot be disallowed but the income of the assessee was required to be estimated. The ld. Counsel for the assessee has pointed out that the AO has not pointed out any decline in the GP rate of the assessee for the year under consideration but the income declared by the assessee shows a better GP and NP rate in comparison to the preceding years. He has re ..... X X X X Extracts X X X X X X X X Extracts X X X X
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