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TMI Blog2012 (12) TMI 1210X X X X Extracts X X X X X X X X Extracts X X X X ..... issue Assessing Officer noted that during the year under consideration sales were declared at ₹ 5322112/- on which assessee has declared GP of ₹ 8,12,143/-, yielding GP rate of 5.65% as against rate of 15.8% declared in the immediately preceding year. Assessing Officer noted that no reason for low GP rate was given by the assessee. Assessing Officer asked the assessee to submit the details of various expenses debited to profit and loss account, details of consumables, consultancy labour charges etc. and purchases, and also to produce the bills and vouchers and the books of account. Assessing Officer found that all bills and vouchers were not available and accordingly he made adhoc additions @ 20% of the consultancy expenses, te ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g year, the Assessing Officer questioned all the expenses and debits in the trading and profit and loss account of the assessee. It was further submitted that the accounts were duly audited u/s. 44AB of the Act and the copies of audited balance sheet, profit and loss account along with tax audit report were filed before the Assessing Officer during the course of assessment proceedings. As regards purchases made by the assessee, the Assessing Officer accepted purchases amounting to ₹ 19,25,807/- made from M/s Artek Enterprises, to whom payments were made by cheques and disallowed the balance purchases of ₹ 12,26,543/-, which were also fully vouched and duly supported by bills of parties from whom such purchases were made. The Ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t in the books of accounts maintained by the assessee which have been duly audited by the Chartered Accountant. He noted that Assessing Officer has not invoked section 145(3) of the I.T. Act to reject the books of accounts, as no specific defects were pointed out by him in the books. Ld. Commissioner of Income Tax (A) concluded as under:- In light of the above discussions, and after giving careful consideration to the remand report submitted by the Assessing Officer as well as voluminous details submitted by the appellant, I am of the opinion that adhoc additions made by the Assessing Officer to the income of the appellant, without pointing out any specific defects in the books of account and without rejecting the books of account u/s. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nder the circumstances, adhoc disallowance is without any basis. Hence, we do not find any infirmity in the order of the Ld. Commissioner of Income Tax (A) and therefore, we uphold the same. 7. The next issue raised is that Ld. Commissioner of Income Tax (A) erred in deleting the addition of ₹ 8,68,500/- on account of alleged gift u/s. 68 of the IT Act. 8. On this issue Assessing Officer noted that assessee has received following cash gifts from the following parties:- Shivani Verma Sister-in-law 101000 Anurdha Verma -do- 101000 Ritu Verma -do- 101000 A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... examination. Furthermore, it was submitted that the amount of ₹ 4,13,900/- received by the assessee from his father Sh. Nand Kumar Verma was never received in the current year, but was lying as an opening balance in his hands having been received in earlier years. Assessee further submitted that the assessee was the youngest member in the joint family and lost his father during the current year. He received a sum of ₹ 50600/- at the time of Uthala last rituals of his father as customary in community. Assessing Officer did not accept this amount has being valid. Furthermore, assessee has received a ₹ 1,01,000/- each from wives of his elder brothers as well as his own wife. Each of them had income from salaries disclosed by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s been proved by the appellant, (iii) the close family relation between the donors and the appellant is evident and apparent, (iv) the cash flow and ITRs of donors prove the source of fund gifted to the appellant and (v) these gifts also stand the test of human probability, given the fact that the appellant is the youngest member of a closely knot joint family and he has lost his father during the year. In view of the above discussion, it is held that the gifts received by the appellate amount to ₹ 8,68,500/- are genuine gifts and therefore, the addition made by the Assessing Officer of this amount u/s. 68 of the Act is hereby deleted. 10. Against the above order the Revenue is in appeal before us. 11. We have heard the rival c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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