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TMI Blog2024 (10) TMI 1651X X X X Extracts X X X X X X X X Extracts X X X X ..... 18 are reproduced below:- "1. That having regard to the facts and circumstances of the case, Ld. CIT(A) ought to have quashed the impugned order passed by Ld. AO as the assumption of jurisdiction u/s 153A is bad in law, invalid and without complying with the mandatory conditions in accordance with law. 2. That in any case and in any view of the matter, Ld. CIT(A) ought to have quashed the impugned order passed by Ld. AO which is bad in law and against the facts and circumstances of the case and the same is not sustainable on various legal and factual grounds. 3. That having regard to the facts and circumstances of the case, Ld. CIT(A) has erred in law and on facts in not deleting the entire addition of Rs.61,93,125/- made by Ld. AO by estimating the gross profit @4% and has further erred in sustaining the same to the extent of Rs.43,31,703/- by reducing the gross profit rate from 4% to 3% and that too after rejecting the books of accounts by applying the provisions of section 145(3) and more particularly when no deficiency has been found in the books of accounts of the assessee and impugned addition has been made/sustained without any basis and by recording incorrect facts ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in not reversing the action of Ld. AO in charging interest u/s 234B and 234C of Income Tax Act, 1961. 11. That the appellant craves the leave to add, modify, amend or delete any of the grounds of appeal at the time of hearing and all the above grounds are without prejudice to each other." 2.1 The following are the identical additional grounds taken by the assessee in all the appeals:- "1. That having regard to the facts and circumstances of the case, the action of Ld. AO in passing the impugned assessment order u/s 143(3)/153A dated 26.08.2021 is illegal, bad in law, inter alia for the reason that the said assessment order has been passed without DIN number as is must as held in the judgements of CIT (International Taxation) vs. Brandix Mauritius Holdings Ltd., ITA No. 163/2023, dated 20.03.2023 (Del), PCIT(E) vs. M/s Tata Medical Centre Trust, ITAT/202/2023, dated 26.09.2023 (Cal) and Ashok Commercial Enterprises vs. Asstt. CIT, WP No. 2595 of 2021, dated 04.09.2023 (Bom) and CBDT Circular No.19/2019 dated 14.08.2019. 2. That in any case and in any view of the matter, the passing of impugned assessment order u/s 143(3)/153A dated 26.08.2021 is illegal, bad in law and th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nk statements of M/s Panna Lal & Company were examined and it was found that money received from bogus sale/ purchase was further rooted to related concerns i.e. M/s Gorja Steel Processors. Considering all these facts, as the completeness and the correctness of books of accounts was found doubtful by the AO, he concluded that books of accounts do not reflect the true and correct accounts and the AO invoked provisions of section 145(3) of the Act by rejecting the books of account of the assessee and to estimate the GP @ 4% in similar lines of business of trading Iron & Steel. It is also pertinent to mentioned here that as per the AO, the GP computed from the actual data derived from the computer system of the assessee during the survey operation was also found 7 to 8 times higher in the current year compared to previous years because search was conducted in the month of July 2018 and assessee group concerns are allegedly in the habit of manipulating books by bogus entries in the last quarter. 4. We find that during the assessment proceedings assessee was asked to explain all the issues relating to modus operandi of the group mentioned and the AO categorically mentioned in the order ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 27 is the ledger account of M/s Laxmi Steel in the books of assessee firm PB 132-134 is further submissions to Ld. A.O. dated 12.04.2021, submitting about the sundry creditors and detailed explanation about various cases PB 155 is the sundry creditors details PB 175 is the GP chart PB 176-178 is the sales register PB 179, 180-183 is the ledger account of M/s P.S. Enterprises PB 184-185 is the purchase register PB 186 is another reply to Ld. A.O. dated 12.04.2021 giving further evidence of purchase / sales and enclosing bills, vouchers, transportation slip etc. enclosed. PB 187-198 is the month-wise list of sales. PB 199-210 are the invoices raised to M/s PS enterprises PB 211-336 are the invoices raised by the asessee to Pannalal & Co. along with transport memo. 5.2 Ld. AR has submitted that A.O. has also recorded in para 4 at page 2 of the assessment order that during the course of assessment proceeding assessee has filed various details / documents / information including bank accounts and all these were looked into. It has also been recorded that audit report, Profit & loss account and balance sheet was furnished. 5.3 It was also submitted that A.O. has men ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... claim that statement of Sh. Sandeep Sharma and Sh. Anand Prakash recorded at the back of the appellant and never confronted to the appellant before using such information was also not found correct by the Ld. CIT(A). It has clearly been observed by the Ld. CIT(A) that all the documents were provided to the appellant during the course of assessment proceedings therefore no separate opportunity to further cross examine was required to be given to the appellant in light of various judgments of the Hon'ble Apex court, (reference para 7.2 page 39 of the CIT(A) order). 6.2 Further, the attention was drawn to the following findings of the CIT(A) which are recorded in the CIT(A) order page - 33 para 6.18:- "6.18 The above details coupled with the fact that the appellant has not produced the books of accounts and other details as called for by the Ld. AO in the search assessment proceedings vindicate the findings of the search as well as conclusions of Ld. AO. Since the appellant failed to produce books of accounts in the search assessment proceedings, especially when there are huge related party transaction, (page 34 - 1st para) the decision of the Ld. AO to reject the books of acco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee was indulging in manipulating the books of account by making bogus purchase/sales, under-invoicing, taking bogus advances in order to reduce its profits and to introduce their undisclosed income. In para 5.11, the AO has mentioned of the fact that a reply dated 24.04.2021 was filed explaining the nature of business of the assessee and the reasons for low GP. The copy of this reply dated 12.04.2021 is made available at pages 297 to 303 of the paper book and, further, the documents attached with this reply have been made available at pages 304 to 404 of the paper book. 7.1 We find that in its reply the assessee had given an account of the reasons for low GP and NP. A copy of capital account of Aditya Kumar Garg in the account of M/s Gorja Steel Processors was filed. The list of creditors giving their names, addresses, PANs and the amounts payable was filed and it was mentioned that the confirmations have already been filed with the main reply. It was mentioned in this reply that ledger account of expenses incurred in excess of Rs.5 lakhs have already been submitted earlier. It was specifically mentioned that the soft copy of the account books are also in the hard disk se ..... X X X X Extracts X X X X X X X X Extracts X X X X
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