9911796707
TMI Blog2003 (6) TMI 166X X X X Extracts X X X X X X X X Extracts X X X X ..... the excise authorities have accepted the books maintained by the assessee. It seems that the AO has made the addition merely on the ground that the assessee could not produce certain sale vouchers and sale bills. The AO has also asked the assessee to file brand-wise details of whisky and beer purchased and sold. In this regard, it was contended by the assessee that there were many brands with so much varieties of whisky and it was not possible to prepare such details. It seems that both the authorities below have not correctly appreciated the nature of the business being carried out by the assessee. In that view of the matter also, the addition was not justified. Furthermore, the GP rate of 2.144 per cent declared by the assessee was consid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ., 1996, relating to the asst. yr. 1990-91. 2. In this appeal, the assessee has taken the following grounds: "1. That the order of the CIT(A) is against law and facts of the case. 2. That the learned CIT(A) has erred in concurring with the ITO in invoking the provisions of s. 145(2), while rejecting the books of account of the appellant-firm and estimating its total income. 3. That the CIT(A) has erred in concurring with the ITO in not accepting the income declared at Rs. 1,24,180 by the assessee and has further erred in assessing the same at Rs. 2,23,976. The order is most arbitrary and he has erred in not accepting the contention of the assessee because: (i) The learned CIT(A) has erred in concurring with the ITO while arbitrarily estimat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee and it did not have any quantitative tally of the goods purchased and sold during the year. The assessee was also asked to file brand-wise details of whisky and beer purchased and sold. The assessee vide letter dt. 30th Sept., 1992, stated that details of brand-wise whisky could not be prepared. It was stated that there were many brands with so much varieties of whisky and it was not possible to prepare such a list. It was also stated that the sales were recorded on daily basis as the amount of sales is deposited and recording is made accordingly in the cash book. Further, it was claimed that the GP rate shown was comparable with other assessees engaged in the same line of business. The AO found that the assessee did not have ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... daily sales statements, stock register, etc., but the assessee failed to produce the same. The learned CIT(A) observed that it was one of the contentions of the assessee before him that the GP rate shown by the assessee was comparable with the other cases and, therefore, the same could be accepted. 6. The learned CIT(A) found that the records maintained and produced at the time of assessment or appeal were not complete and a proper verification of the purchase and sale transactions could not be made. The learned CIT(A) further pointed out that no document was produced before him to support the view that GP rate of 2.144 per cent declared was adequate. According to him, the GP rate was low as the retailer would make much higher profit. The l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as not justified in rejecting the book results. He further submitted that while deciding the appeal, the learned CIT(A) has not properly appreciated the facts of the present case and confirmed the action of the AO without assigning any cogent reasons. Accordingly, it was submitted that the order of the CIT(A) may be set aside. 8. Shri S.K. Mittal, the learned Departmental Representative, strongly supported the orders of the authorities below. 9. I have carefully considered the rival submissions and have also perused the orders of the authorities below. It is an admitted position that the assessee had furnished audited accounts along with the return of income. The auditors have not given any adverse comments in the report. Similarly, the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... have already noted hereinabove that no defect has been pointed out in the books of account and the accounts were audited by the auditors. Similarly, the excise authorities have not pointed out any defect in the books of account maintained by the assessee. The assessee was dealing in exciseable items and was being checked periodically by the excise authorities. 10. Considering all the abovenoted facts, I do not see any justification in making the addition. It is also true that no sales and purchases were found outside the books of account. It is also not the case of the Department that the assessee was not showing the correct income in its books of account. 11. Viewed from any angle, the learned CIT(A) was not justified in upholding the acti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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