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TMI Blog2020 (2) TMI 1501X X X X Extracts X X X X X X X X Extracts X X X X ..... nothing but wild guess works, which vary from year to year and which has no relevance with comparable cases or with any other material or reason for doing so. In view of the settled legal preposition addition made on the basis of guess work may be deleted. AO was not justified to reject books of account and estimate profit. Addition on account of sundry creditors and unexplained cash deposits - AO has concluded that the creditors are not genuine to the extent for which the payment have been made in the subsequent year. - HELD THAT:- AO has not disputed the creditors to the extent for which the payment have been made during the year itself. Thus what the AO is holding that the creditors are partly genuine and partly in genuine. The conclusions drawn by the AO are thus self-conflicting, inconsistence and apparently variable which is not tenable under the explicit provision of the Act. These creditors have also been held genuine by the AO himself while deciding the case for the AY 2013- 14 under section 143(3) wherein no separate addition on account of these creditors have been made. During Assessment proceedings the assessee has furnished complete postal addresses of all thes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ear. Hence, the addition made on account of sundry creditors is hereby by deleted. Cash deposit in the same bank account through which the entire sale and purchase of milk has taken place - CIT (A) has given a categorical finding that an amount of ₹ 48,89,110/- represents the sale of milk in cash. The ld. CIT (A) held that the amount of ₹ 2,10,890/- is the opening balance. The assessee started his business in the current assessment year only. It is not clear from the records whether this amount of ₹ 2,10,890/- represents the deposit of cash utilized for opening the bank account or otherwise. Hence, the AO is hereby directed to examine the account and give effect to this amount if it represents the cash utilized for opening of the bank account. - ITA No. 6168/Del/2016, CO No. 09/Del/2017 - - - Dated:- 24-2-2020 - Sh. Kuldip Singh, Judicial Member And Dr. B. R. R. Kumar, Accountant Member For the Assessee : Sh. Jagdish Ajmani, CA For the Revenue : Sh. Saras Kumar, Sr. DR ORDER PER DR. B. R. R. KUMAR, ACCOUNTANT MEMBER: The present appeal filed by the revenue and Cross Objection by the assessee are directed against the or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... profit @0.04% was declared. GP was shown @0.22%. 6. The reasons given by the AO while estimating the profit @5% on the gross turnover is as under: 1. Soft Copy of books was not filed, although specifically asked for. 2. On perusal of Purchase Bills, it is seen that they were identical, generated through in the same style as is prepared by a single hand. 3. Tanker Numbers were not written on the Purchase Bills. 4. These Bills were like new printouts as if it has not passed on to many hands. 5. All the purchase bills were sequentially numbered although belong to different persons except tie bills of Kwality Dairy (India) Ltd. 6. Like, Purchase Bills, Sale Bills were also computer generated in the same style and new like paper (without any fold), as if it has not passed through many hands. 7. All sale and Purchase Bills bear the similar style of signatures as if prepared by the same group of persons. 8. None of the sale bill or the purchase bills contained signatures of the recipient of goods. 9. No voucher in respect of Tanker Hire Charges was produced. 10. Stock register not maintained. 11. Cash Book not produced for verif ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er distributor of the same trade in whose case profit rate stand accepted by the department under section 143(3) of the Act, particularly in the same charge. 3. Though the assessee is trading in an unorganized sector of milk trading but even then most of its purchase and sale is through banking channel and is supported by regular bills. 4. The assessee is regularly maintaining books of accounts, in accordance with section 44AA of the Income Tax Act. 1961, which stand duly audited under section 44AB. The books of accounts were produced before the A.O. many a times and the A.O. has also affirmed these facts on page 4 of the order wherein it is mentioned on 25.03.2015, the A.R appeared and produced books of accounts . 5. On the basis of books of accounts maintained in the regular course of business, the assessee filled return of income declaring net taxable income of ₹ 3,48,243 on 10/10,2013. The A.O. has made following addition: i. Addition of ₹ 2,79,61,917, by applying net presumptive profit rate of 5% ii. Addition of ₹ 51,00,000, by rejecting trade debtors. iii. Addition of ₹ 88,38,110, by holding balances of sundry creditors a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the assessee has duly mentioned vehicle number on each purchase bill/sale bill. There may be some omission in one or the two bills but as a matter of routine all the purchase and sale bills bear tanker number. More so each Purchase/Sale bills is also supported by delivery challan, where in tanker number is also mentioned. Goods cannot be transported unless the container is accompanied with sale bill or delivery challan wherein tanker number is duly mentioned. Copy of purchase/sale bill and delivery challan of each month is submitted here with. 4. Purchase/Sale Bills are Serial Numbered: Rebuttal: The next objection of A.O. is that some of the Purchase bills are serial numbered, though these purchases are made from different persons. In this regard it is submitted that the bulk purchase is made by the assessee from few whole sale dealers, who issue regular bills which obviously have different serial number. But small quantity of milk is also purchased from villagers who do not have facility for issuing proper bills. In order to systematically account for these purchases assessee has printed his own purchase voucher which he calls as retail purchase bills . All th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vouchers and month wise details of transport expenses is submitted here with. 7. Separate stock register is not maintained: Rebuttal: The A.O. has expressed a concern that separate stock register is not maintained. In this regard it is submitted that the assessee is maintaining its account on specialized accounting software called Tally where day to day quantitative detail is self-generated and embedded with the respective ledger accounts of purchase and sales. In this software separated stock register/Stock inventory is self-generated. Besides, the quantitative detail is also mentioned in each purchase/sale bills. More so the nature of business of the assessee is such that stock at the end of everyday is reduced to Nil and the day to day stock summary can be summed up in a page or two. Copies of stock inventory as generated from Tally software and stock summary is submitted here with. 8. Cash Book is not produced: Rebuttal: The AO has mentioned that the cash book is not produced. This finding of AO is against the factual position. The assessee is preparing its account on computerized software called Tally in which cash book, ledger and ot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the same in the body of the order. 12. In the Audit report Opening as well as Closing stock is Nil: Rebuttal: Objection of Ld. A.O. is that, in the tax audit report opening as well as closing stock is mentioned as Nil. In this regard it is submitted that the assessee is dealing in perishable goods (milk), so opening as well as closing stock is bound to be Nil almost every day. When the opening as well as closing stock is nil, naturally the tax auditor has to confirm the factual position so he has rightly written as Nil. There being no abnormality in the observations so the same cannot be construed as defects within the meaning of section 145(3). 13. There are Credit Purchase and Sale upto 09.09.2011: Rebuttal: Next objection of Ld. A.O. is that the bank account was opened on 09.09.11 but before that assessee has made credit purchase and credit sale of ₹ 29.00 Crore. In this regard it is submitted that this was the first year of the assessee, so at the initial level all the purchases/and sales were made on credit basis excepting a fraction of amount. However these credit purchase and sales were realized/paid in the subsequent months through banking ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent through banking transaction, credit purchase and credit sale. Further this activity as per the requirement of law has to be recorded in the books of accounts strictly in accordance with the provision of section 44AA and shall be audited by the tax auditor under section 44AB. The assesse has complied with all these provisions of the law and the AO has not found any defect or infirmity or irregularity in these documents. But even in the presence of these documents maintained in the regular course of business, the AO has negated the entire business process. (b) The business activity resulted into profit and the assessee has paid due taxes on the income declared in the return for the year. It is also submitted that in the business activities there is neither any unsecured loan nor any accumulation/transfer of money by way of any other mode. The creditors/debtors of the year stand settled during the year itself or at the best in the very next assessment year at the earliest possible. (c) The AO has been very selective in negating the business activities. Thus he has accepted the sundry creditors worth ₹ 24,17,14,924/- and sundry debtors worth ₹ 24,5 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ble right to the AO to estimate the income, but at the same time section cast several obligations on the AO. These obligations which are mandatory in nature are discussed in the following paragraphs: i. REJECTION OF BOOKS OF ACCOUNTS IS MANDATORY BEFORE ESTIMATION. At the outset section cast an obligation on the AO that before resorting to estimation under section 145(3) it is incumbent upon him to reject the books of accounts. It is an established judicial preposition that estimation of income under section 145(3) cannot be made unless the books of accounts of the assessee are rejected in clear terms and the assessment is framed in the manner provided under section 144. ITO vs Anil Kumar Co., ITA No. 20001/2014, Karnataka. Without rejecting the books of accounts or pointing out incompletion or inaccuracy in the accounts, AO cannot invoke section 145(3). M/s Paras Dying and printing Mil! 4 ITR 24 KHT. In the given case, the assessee has maintained regular books of accounts which were duly audited by tax auditor and these books of accounts were also produced before AO. The AO has not rejected these books of accounts rather ignored these books of accounts and proceed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bad in law. While explaining the principle Apex Court has observed If there is no definite finding in the order that in his opinion the income, profits and gains could not properly be deduced there from, in that event assessment framed is bad in law. b. The AO has neither rejected books of accounts nor pointed out any accounting defects and has also not recorded any satisfaction in the body of assessment order with regard to inaccuracy of accounts as such assessment framed is bad in law. iv. BASIS OF ESTIMATION OF PROFIT Once book results were rejected in terms of provisions of sec. 145(3) of the Act, it is not the ipse dixit of the AO to compute the income either u/s 144(1) or sec. 145(3) the computation and determination of income cannot be at the whims and fancies of A.O. There must be in existence relevant material or evidence, for making estimation of income. CIT Vs Daulat Ram Rawatmul 87 ITR 349 (S.C). However, the A.O. has not placed on records any material or evidence or the basis of his estimation. In fact, A.O. has not given even a single reason for estimating the income and for making such a huge addition. V. CONFRONTING THE BASIS OF ESTIMATION TO ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e has simply ignored the books of accounts, which is apparently not permissible under the law. Similarly, the AO has accepted the sales in respect of which proceeds have been realized through banking channel, but he has added back the amount of sales in respect of which proceeds were realized by way of cash. Thus the AO has been selective in accepting and rejecting the books of accounts and the business process as a whole which is in fact not permissible under the law. Action of AO is highly arbitrary, against the spirit of law and the assessment framed is bad in law. ii. ESTIMATION WITHOUT REJECTING BOOKS. The assessee had been maintaining regular books of account, which were duly audited by an independent chartered accountant. The financial results were fully supported with vouchers and the books of account which were complete and correct in air respects. These books of accounts and the supporting materials were duly produced before the AO. However the AO has neither pointed out any material defects in the books of accounts, nor rejected the same but has proceeded to make addition under section 145(3). Without enlisting the defects, incompletion and inaccuracies i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .A. No.200001/2014, Karnataka The AO cannot base its findings on suspicions, conjectures or surmises, nor can it act on improper rejection of materials partly on evidence and partly suspicions, conjectures or surmises and if it so does, the finding is required to be set aside . In Omar Salay Moharned Sait v. CIT [1959] 37 ITR 151 (SC). In the instant case the Assessing Officer has not rejected the books of accounts of the assessee. To put it differently the Assessing Officer has not made out a case that conditions Said down in Section 145(3) of the Act are satisfied for rejection of the books of accounts. Thus, the action of AO in resorting to estimation without rejecting books is arbitrary and against the explicit provisions of the Act. III. TO POINT OUT SPECIFIC DEFECTS IN THE BOOKS. a. It is the settled law that unless the A.O. points out specific defects in the Books of accounts, to the extent which make it impossible or difficult for the AO to deduce the correct profit, books of accounts cannot be rejected. Further the scope and limitation of the word defect has been define in the section itself. Thus the section defines that the defects in the books of acco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of section 145 of the Act, M/s Paras Dyeing and Printing Mills P Ltd 004 ITR (Trib) 0029 (Ahd). f. Thus, the scope of the provisions of section 145 conclusive establishing the fact that, what is important for rejection of books is the AO being not satisfied about the correctness or completeness of the accounts and it is for the AO to establish the incompleteness or incorrectness of the accounts of the assesse , Ashok Refractories Pvt. Ltd (279 ITR 457) Calcutta High Court. g. The power to reject the books of accounts under section 145(3) arises only if the AO is satisfy that there is a major defect in the books of accounts which comes in the way of determining the actual profit . DCIT v. Associated Petroleum Corporation [2011] 44 SOT 45 (Ahd.), ITA No. 47 /PNJ/2013. h. In CIT v. Amitbhai Gunvantbhai [1981] 129 ITR 573 (Gut.), the Hon'ble jurisdictional High Court has held that the basic principle is the same in law relating to income-tax as well as in civil law, namely, if there is no challenge to the transaction represented by the entries, then it is not open to the revenue or other side to contend that what is shown by the entries is not the real state of a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... there is no finding that books of accounts are incomplete or incorrect, accounts cannot be rejected. CIT v. Rajni Kant Dave [2006] 281 ITR 6 (Ali) , if there is no finding that income could not be deduced from the accounts maintained by the assessee, then rejection of accounts would be invalid, Juggilai Kamlapat Udyog Ltd. v. CIT [2005] 278 ITR 522 (Cal,) . Unless there is a finding against the assessee that his income, profits and gains could not properly be deduced from his method of accounting which he has been regularly employing, the accounts cannot be disturbed. P. Venkanna v. CIT [1969] 72 ITR 328 . f. Hon ble jurisdictional High Court, in the case of Bastiram Narayandas Maheswari (210 ITR 438), held that it is the settled law that the books cannot be rejected u/s 145 of the act and resort to best judgment assessment, unless the AO record any finding that the books of accounts maintained by the assessee are incorrect rendering it impossible to deduce the profits, AO needs to indicate that he noticed any inconsistency or infirmity in the Audit report. Madnani Construction corporation P Ltd vs CIT (296 ITR 0045) (Gauhati). 13. The Assessing Officer has neither giv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arbitrarily, the AO should adopt a method which must reflect the profits truly and justly [Gemini Pictures Ltd. vs CIT (1958) 33 ITR 547 (Mad).] For estimating the profit, the AO can always have a look at the margin returned in comparable cases or even in assessee's own case in the preceding years. e. The Hon'ble Rajasthan High Court in CIT vs. Gotan Lime Khanij Udhyog (2001) 256 ITR 243 (Raj) held that the books of account together with past history of the case as also material collected should be considered for estimation of income. The past history is the best guide where provisions of s. 145(3) of the Act are invoked as held in Ajay Goyal vs. ITO (2006) 99 TTJ (Jd) 164, Madan Lal vs. ITO (2006) 99 110 (Jd) 538, CIT vs. Popular Electric Co, (P) Ltd. (1993) 203 ITR 630(Cal) and M.A Rauf vs. CIT (1958) 33 ITR 843 (Pat)., i.e., law in respect of assessments made on the basis of best judgment or estimate is well-settled. Hon'ble Supreme Court in the case of, lays down that while making the best judgment assessment, no doubt, should arrive at its conclusion without any bias and on rational basis. That authority should not be vindictive or capricious. f. Once b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nfronting the assessee the basis for rejection of books of accounts and thereafter confronting the assessee material and evidence on the basis of which AO is intending to make addition. Unless this basic requirement of section 144 is not fulfilled and the AO has not given an opportunity to the assessee to contradict the materials upon which the Assessing Officer wants to base his estimate. Assessment framed is bad in law. Addl. ITO Vs Ponkunnam Traders (1976) 102 ITR 366 (Ker). b. The Definition of word material and evidence has further been elaborated by Hon'ble Supreme Court and it has been held that though the scope of the phrase can be wider but it can be past history of the case, subsequent history of the case, facts of the case or the profit rate of other comparable cases. c. The rule of law on this subject has been well settled that estimates framed without giving the basis for their fixation or without furnishing to the assessee the material on which basis books of accounts are being rejected or without giving an opportunity to the assessee to rebut it are bad. Needless to say that statutory function of AO, being quasi-judicial authority, in framing the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nts of the assessee, AO cannot expressively or otherwise, invoke the provisions of section 145(3) of the Act. Mr. K.N. Ramchandra Naidu vs. CIT, ITA No. 47/PNJ/2013. Without pointing out any such defect in the account books or bringing on record instances of unrecorded production or unrecorded sales, or any other infirmity or definite defect which has specific bearing on calculation of profit from the books of accounts, of accounts cannot be rejected by applying provisions of section 145(3). DCIT Vs Associated Stone Industries Limited 22 TW 155 (Jaipur). d. Where the defects pointed out in the books of accounts were of general or technical nature and no suppression of sale or purchase was pointed out book results or books of accounts cannot be rejected . Vadayattu Jewellery Vs. State of Kerala (1997) 104 SIC 121, (Ker.).The department has to prove satisfactorily that the accounts books are unreliable, incorrect or incomplete before it can reject the accounts. Rejection should not be done lightly . St. TerrsaOil Mills vs. State of Kerala (1970) 76 ITR 365 (KER.). e. In the case of ACIT Vs. Hitech Grain Processing Pvt. Ltd., ITA No. 2885/Del/2011, the Hon'ble ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... through banking channels only except marginal sale of ₹ 48,89,100/. There was no purchase made in cash. All the relevant bills/vouchers were produced before the AO for verification. The trading activity was supported by quantitative details as separate stock register was maintained. Regular books of account were maintained by the assessee, which were duly audited by the tax auditor. There was running account of trade creditors and debtors maintained by the assessee, which can be verified from the details given by the assessee in this regard. The AO has not considered all these facts while estimating the profit and rejecting the books of account. On the contrary, the AO has held that no such business was carried out by the assessee. It is not understood as to when there was no business carried out by the assessee, then how the profit of the same business can be estimated. I do not find any reason for rejection of books of account, whereas, all the relevant details including books of account were filed by the assessee before the AO for verification. There was no specific defect pointed out by the AO in the books of account The assessee has also given comparative chart of balan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Credit Purchase 861,366,340 1,103,754,138 1,195,793,275 1,021,076,444 Direct Expenses 3,278,560 4,582,800 4,186,460 4,080,510 Gross Profit 1,938,819 2,212,500 2,538,062 2,617,504 Total 866,583,719 1,110,549,438 1,202,517,797 1,027,774,457 Cash Sales 4,889,100 Nil Nil Nil Credit Sales 861,694,619 1,110,549,438 1,202,517,797 1,027,774,457 Closing Stock Nil Nil Nil Nil Total 866,583,719 1,110,549,438 1,202,517,797 1,027,774 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hich clearly shows that the cash sale made to the retail traders is duly supported by the corresponding purchase. The above ledger account of purchase and sale is also summarized hereunder in the tabulated form: Date of Purchase Name of the Party Quantity Purchased in Kg Purchase Value Quantity Sold in Kg Cash Sales Credit sales Total Sale Value 01.11.11 Kwality Dairy 79,285 24,97,479 79,285 4,59,800 20,50,443 25,10,243 02.11.11 Kwality Dairy 73,610 23,18,715 73,610 8,64,100 14,66,313 23,30,413 03.11.11 Kwality Dairy 80,085 25,22,678 80,085 17,72,600 7,62,938 25,35,538 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the books maintained by the assessee. [CIT vs P. Mohanakala (2007) 291 ITR 278 (SC)]. The section is applicable only when a sum is found credited in the books of the assessee [Rakesh Kalia v. CIT, (2006) 286 ITR 357 (Dei.)]. In the case of assessee neither any sum has been credited in the books of accounts or in the bank account even for a single day throughout the year which is evident from the peak analysis of bank account is submitted here with. As evident from the bank account, sale proceeds realized was deposited in the bank are utilized in the same day for making payments of purchases. The sale proceeds realized was not lying as credit in the books of accounts of the assessee even for a single day. Hence by any stretch of imagination, payments received from the trade debtors cannot be covered within the meaning of credits under section 68. 25. In the case of Dewas Soya Ltd. Vs ITO ITA NO.336/IND/2012 HAT Hon'ble ITAT has also held just because the amounts were received from the buyers in cash, the assessee cannot be penalized because the restriction placed for payment u/s 40A(3) of the Act applies to buyer and not the seller. There being no restriction under the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lage SirsaKher, Tehsil 3ulana, Distt, Jind 13,33,808 9,00,000 4,33,808 4,33,808 4. Dharam Singh Dagar Village Chilewal, Tehsil Tohanay, Distt. Fatehabad 13,07,570 8,71,000 4,36,570 4,36,570 5. Gopal Rai Village Nidana, Tehsil Maham, Distt. Rohtak 13,56,049 8,95,000 4,61,049 4,61,049 6. Jagat Ram Village Ranika, Tehsil Nagina, Distt. Mewat 13,16,844 8,70,000 4,46,844 4,46,844 7. Jagdish Changal Village Nilanwali, Tehsil Dabwali, Distt. Sirsa 12,65,433 8,75,000 3,90,433 3,90,433 8. Jaggu Mourwal Village Badeo, Tehsil Ferozepur Jhirka, Distt. Mewat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4,91,396 19. Suresh Raparia Village Khera Alampur, Tehsil Jatusana, Distt. Rewari 12,86,166 8,58,500 4,27,666 4,27,666 20. Ajay Yadav Village Assan, Tehsil Rohtak, Distt. Rohtak 12,89,327 8,80,000 4,09,327 4,09,327 Total 2,64,36,090 1,76,22,980 88,13,110 88,13,110 29. The above tabulated analysis clearly shows that the purchases have been made in the regular course of business. It was also submitted that the amount of credit represents the purchases made by the assessee which form part of the total purchases shown in the return and the total quantity shown in the return. Still more the milk purchase on credit basis from these persons have been sold on the same date and the sale amount also form part of the total sales. Copy of accounts of these creditors submitted here wit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ny material or evident on record held that these sundry creditors are not genuine and made addition of ₹ 88,38,110/-. The AO has thus erred in not appreciating the facts that when the assessee has supplied names and addresses of sundry creditors and the nature of transaction and also the capacity of the creditors his onus stands discharged. 33. It is a settled legal preposition that addition under section 68 can be made only if assessee offers no explanation about the nature about the nature and source of such credits . The assessee has clearly explain the nature of the credit which Is undoubtedly milk purchase from the villagers and also the corresponding source which are the regular milk suppliers to whom payments have also made, which also stand accepted by the AO in the next year. When the assessee discharged his onus, such burden, which is placed on the assessee, shifts on the AO. The AO has not verified these evidences and even the major fact that the payment stand made to these creditor in the subsequent year. Thus without putting any material or evidence on record the AO has proceeded in invoking the provision of section 68 which is against the intent and purpos ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... explanation given by the assessee without considering its acceptability in the light of the fact and circumstances of the case, or rejects the explanation without verifying it, the addition cannot be sustained. Mehta Parikh Co. v. CIT [(1956) 30 ITR 181 (SC)]; [K.S. KannanKunhi v. CIT, (1969) 72 ITR. 757, 765 (Ker)(SC)]. The assessee has given all probable and possible explanation about the Identity, capacity and the nature of transactions. AO has not put on any, material or evidence on record to contravene his explanation and b. record a satisfaction that the evidences are not reliable. 39. The objection of AO is that name of Tehsil, District and city is given but House No. and Street No., is not given. It is a common knowledge that in small village house numbers and street numbers are not given and name of the village and tehsil in itself is a complete postal address to verify the identity and genuineness of the creditor. The AO cannot ask the assessee to do the improbable or the impossible. The assessee has also explained that his nature of business is such that on certain occasions he has to purchase milk from small villagers, who eventually- become his sundry creditor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ount in the immediate succeeding year. Complete account of sale/purchase was furnished before the AO for verification. Quantitative details of the sale/purchases were given as under: (Repetitive from page no. 36) Date of Purchase Name of the Party Quantity Purchased in Kg Purchase Value Quantity Sold in Kg Cash Sales Credit sales Total Sale Value 01.11.11 Kwality Dairy 79,285 24,97,479 79,285 4,59,800 20,50,443 25,10,243 02.11.11 Kwality Dairy 73,610 23,18,715 73,610 8,64,100 14,66,313 23,30,413 03.11.11 Kwality Dairy 80,085 25,22,678 80,085 17,72,600 7,62,938 25,35,538 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l available on record. 47. Having gone through the record, we find that the ld. CIT (A) has passed a well reasoned order taking into consideration the point wise rebuttal given by the ld. AR with regard to the rejection of the books of account and estimation of profit. We find no reason to interfere with the order of the ld. CIT (A) which has been quoted above. Hence, the ground no. 1 taken up by the revenue is liable to be dismissed. Regarding the addition made on account of sundry creditors, it has been undisputedly proved by the assessee that the sundry creditors have been paid off immediately in the subsequent years and all the details have been submitted which consists of amount of purchase of milk in the year, amount paid during the year, outstanding balance as on 31.03.2012 and the payment made during the next year from 01.04.2012. There was no dispute that the assessee has purchased milk from the 20 suppliers and squared off the amounts subsequently in the next financial year. Hence, the addition made on account of sundry creditors is hereby by deleted. Regarding the cash deposit in the same bank account through which the entire sale and purchase of milk has taken ..... X X X X Extracts X X X X X X X X Extracts X X X X
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