9911796707
TMI Blog2021 (5) TMI 752X X X X Extracts X X X X X X X X Extracts X X X X ..... account. Although the assessee did not produce the relevant vouchers and bills before the Assessing Officer, at this juncture, it does not appear very feasible to us to remit the matter back to the Assessing Officer for re-examination. In our considered opinion, interest of substantial justice would be served by directing the Assessing Officer to re-compute the net profit @ 4% on sales of ₹ 12,81,85,658/- before deduction of depreciation and interest and remuneration to partners. This will take care of any possible leakages on account of expenses not duly evidenced by bills and vouchers and the interest of the Revenue would be safeguarded. Accordingly, we direct the Assessing Officer to re-compute the income of the assessee by t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce of ₹ 88,46,121/, the assessment was completed at an income of ₹ 1,04,88,010/-. 2.1 Aggrieved, the assessee approached the Ld. First Appellate Authority, who dismissed the assessee s appeal for the same reason i.e., no written submissions or documents were submitted before the Ld. First Appellate Authority. The order of the Ld. CIT(A) was passed ex-parte qua the assessee. 2.2 Now, the assessee has approached this Tribunal challenging the disallowance by raising the following grounds of appeal: 1 That on the facts and in the circumstances of the case, Ld. CIT(A) has erred in law in passing the impugned order without providing adequate opportunity of hearing to the appellant and in violation of principles of n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1.02.2019 and the new partners came to know of the outstanding demand for the captioned Assessment Year when a notice u/s 221 of the Income Tax Act, 1961 was received. It was submitted that thereafter, immediately after coming to know of the dismissal of assessee s appeal by the Ld. CIT(A), the present appeal was filed. It was submitted that on the facts and circumstances of the case, the assessee s prayer for condonation of delay in filing this appeal be accepted. 4.0 Per contra, the Ld. Sr. Departmental Representative (DR) opposed the contention of delay. 5.0 Having heard both the parties and having gone through the case and perused the material on records, we are of the considered opinion that in view of substantial justice, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Income Tax Act, 1961, without appreciating the fact that the books of account were duly audited and copy of audited financial statements had been filed along with return of income. The Ld. AR submitted that the rejection of books of account was bad in law and so was the adhoc disallowance of expenditure. It was prayed that since the addition was based on mere guess work and further had no reasonable basis the same ought to be deleted completely. 7.0 Per contra, the Ld. Sr. Departmental Representative (DR) supported the orders of the Lower Authorities and submitted that whatever the reason might have been, the fact remained that the assessee had not produced one single voucher either during the assessment proceedings or during the Fir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t is quite possible that the relevant vouchers and documents / books of account might not be available now. 8.1 On a query from the Bench, the Ld. AR also was not in a position to give an undertaking that if the matter is restored to the office of the Assessing Officer, the assessee would be able to produce the relevant vouchers and books of account. 8.2 We have gone through the Chart submitted by the assessee depicting sales, gross profit and the net profit for Assessment Years 2012-13, 2013-14 and 2014-15. This Chart is being reproduced herein under for a ready reference: AY 2012-13 2013-14 2014-15 Sale ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... claim of expenditure was genuine. We are in complete agreement with the observation of the Assessing Officer that since the assessee had failed to produce bills and vouchers relating to the various expenses debited in the Profit and Loss Account, complete and correct profit cannot be deduced from such books of account. Since, the assessee had failed to produce the relevant bills and vouchers, we uphold the action of the Assessing Officer in rejecting the books of account. 8.3 However, although the assessee did not produce the relevant vouchers and bills before the Assessing Officer, at this juncture, it does not appear very feasible to us to remit the matter back to the Assessing Officer for re-examination. In our considered opinion, ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
