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TMI Blog2021 (3) TMI 1097X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee to substantiate his case directing the assessee to produce the books of accounts and audit report failing which the Assessing Officer shall pass an appropriate order as per law. In the present case the addition is also based on the order of the CIT (Appeals) for assessment year 2010-11. This order has now been restored back to the ld. AO for that year. When additions are confirmed on the basis of the order of ld. CIT(A) for earlier years which has already been sent back to the ld. AO for fresh decision, there is no reason that why this year should also not be restored back to the file of the ld. AO for fresh assessment. SO, we also set aside this appeal with similar direction to the file of the Assessing Officer. Rejection of books of accounts - Addition of 5% of gross sales - HELD THAT:- In the return of income the assessee has filled up the figures only with some of the items, therefore, it is apparent that no books of accounts were maintained. During the assessment proceedings, the Assessing Officer did not dispute the turnover or the expenses as well as the cash on hand and amount of debtors. The only addition was with respect to the discrepancy in the opening stock. In ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ading of hardware and sanitary stores. Now the business is closed. Ld. AO, based on the return of income for assessment year 2010-11, the case of the assessee was selected for scrutiny. In assessment year 2010-11 few additions were made in the hands of the assessee. Such additions were by increasing the sale by ₹ 50 lakhs and un-secured loan of ₹ 1.89 crores under Section 68 of the Income Tax Act, 1961 (the Act). Thus, in this case for this year also the assessee received notices. The assessee did not produce any supporting bills and vouchers along with the books of accounts. The ld. Assessing Officer found that closing stock of the last year were shown at ₹ 60 lakhs lower than the opening stock of this year. Therefore, the assessee was questioned. The assessee submitted that the accounts prepared by somebody for obtaining bank loan and are bogus. This fact was also admitted by the assessee in survey and CA of the assessee. Assessee submitted that figure of the sales are duly supported by documentary evidence, VAT returns. Therefore, the figures in the return of income are in wide variance with that and figures of return of income are bogus. Assessing Officer made ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itted a comparative chart of net profit for four years. He also submitted that the statement of the Chartered Accountant, Shri Sandeep Kumar clearly shows that he has prepared the books of accounts of the assessee and has also signed the tax audit report for assessment year 2010-11 without examination of the books of accounts and figures there in are bogus. He, therefore, submitted that the addition deserves to be deleted. He further referred to the order of the Addl. Chief Metropolitan Magistrate, Delhi, dated 11.04.2015 wherein the facts of the case are explained in detail. He relied upon those facts. 6. The ld. DR vehemently objected to the arguments of the ld. AR and exceedingly relied upon the findings of the ld. AO and CIT (Appeals). However, he submitted that the order of the ld. Assessing Officer for assessment year 2010-11 had been set aside by the co-ordinate bench to the file of ld. AO and, therefore, out-come of the said order by the AO needs to be considered. 7. We have carefully considered the rival contentions and perused the orders of the lower authorities. The addition is sustained by the ld. CIT(A) based on the findings of the ld. CIT(A) in assessee's own ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... this issue in para Nos. 8 to 10 as under:- "8. Ground Nos. 2 & 3 are in respect of addition of ₹ 1,97,13,430/-. As mentioned above, the return for Assessment Year 2009-10 was filed manually and columns in the return were filled only in respect of debtors, stock-in-trade, cash balance, gross receipts, gross profit and net profit had been filled up. Apparently, this meant that appellant was not maintaining any books of accounts and the figures were given on estimate basis. The Assessing Officer has placed reliance on the accounts furnished for Assessment Year 2010-11 to show that opening stock had been shown at ₹ 2,01,23,560/-. During the course of assessment, the Assessing Officer has not disputed the turnover or the expenses of the appellant. He has not even doubted the cash balance and the figure of sundry debtors. He has only added the quantum of discrepancy in the opening and closing stock to the in- trade shown in the return of income as on 31-03-2009. 9. In this context, it is pertinent to note that in the Assessment Year 2010-11, the appellant went in appeal before the CIT(A). The CIT(A) while deciding the case held as under:- "7. The appellant him ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f survey conducted at the premises of the appellant. Considering the fact of the case, the addition is deleted. Both these grounds of appeal are allowed. " 10. The Assessing Officer aggrieved, therefore, is in appeal. 11. The ld. DR vehemently supported the order of the ld. Assessing Officer whereas the ld. AR supported the order of the CIT (Appeals). 12. We have carefully considered the rival contentions and perused the orders of the lower authorities. In the return of income the assessee has filled up the figures only with some of the items, therefore, it is apparent that no books of accounts were maintained. During the assessment proceedings, the Assessing Officer did not dispute the turnover or the expenses as well as the cash on hand and amount of debtors. The only addition was with respect to the discrepancy in the opening stock. In assessment year 2010-11 the Assessing Officer rejected the books of accounts and made the addition whereas in the impugned year he has not disturbed the trading results of the assessee which has turnover of only ₹ 9,45,132/-. The Assessing Officer has merely added the difference in the opening stock as well as the closing stock. The ..... X X X X Extracts X X X X X X X X Extracts X X X X
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