2019 (7) TMI 2048

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..... ilarly, the ld. Counsel further placed reliance on the decision of Vijay Industries [ 2017 (3) TMI 1958 - RAJASTHAN HIGH COURT] wherein also it was held that addition cannot be justified without rejection of books of accounts. Similarly, in the case of ACIT Vs. Ercon Composites [ 2013 (12) TMI 902 - ITAT JODHPUR] wherein it was held that without rejecting books of account addition on estimate basis was not justified. We are of the considered opinion that the AO was not justified in making addition on account of URD purchases, hence the same is therefore directed to be deleted - Assessee appeal allowed.
Shri Bhavnesh Saini, Judicial Member And Shri O.P. Meena, Accountant Member For the Assessee : Shri P.M. Jagasheth-CA. For the Revenue .....

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..... r consideration was 0.88% in comparison to last years net profit margin 0.76%. However, the Assessing Officer was not satisfied with the explanation and observed that the assessee has not disputed the fact all the purchases were made in cash and no full name and address of the purchases of parties appearing memos/vouchers. The Assessing Officer further referred a decision of Ahmedabad ITAT in IT (SS) A.No. 66 Ahd 2013 dated 28.09.2013 in the case of DCIT, Central Circle-3, Surat Vs. V.P. Desai(HUF) in which net profit between 2 to 3% of URD purchases was considered. In view of this, the Assessing Officer considered 3% of total purchases of Rs. 14,37,04,487/- and computed net profit at Rs. 43,11,134/- as against which the loss arrived by com .....

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..... posites [2014] 49 taxmann.com 489 (Jodhpur Tribunal) wherein it was held that without rejecting books of account addition on estimate basis was not justified. Similarly, the ld. Counsel also placed reliance in the case of Sky Jet 71 ITD 91 Ahmedabad Tribunal. 7. Per contra, the ld. Senior Departmental Representative relied on the order of Lower Authorities. 8. We have heard the rival submissions and perused the material available on record, we find that the Assessing Officer has made addition by estimating the gross profit rate of URD purchases without rejection of books of accounts. The Assessing Officer has not pointed out any particular defects or discrepancies in the accounts books maintained the assessee. It is further noticed that t .....

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