2006 (9) TMI 233

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....e) and Kilns. In this year, two lime Kilns one at Town Gotan, Dist. Nagaur and another at village Borunda, Dist. Jodhpur were run by the assessee in the name and style of M/s United Chemicals Products and M/s Ajij Lime & Plaster Industries. Books of account of both the concerns were maintained separately. The turnover of the first concern was at Rs. 45,62,002 and of the second concern at Rs. 27,55,023 totalling RS. 73,17,025. The AO observed that the accounts of the second concern were not audited. On being called upon to explain the reasons it was stated that the assessee being an illiterate person had appointed a chartered accountant to get the books of account audited and for doing all taxation and audit work. It was stated that the asse....

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....ting the accounts of the second concern audited, the sales of which was less than Rs. 40 lakhs and assessee being an illiterate, could not be saddled with such a heavy penalty. On the other hand, the stand of the Department is that Shri R.B. Soni had not been produced before the AO for examination and the learned CIT(A) has further mentioned in para 5 of the impugned order that it was incumbent upon the assessee to give evidence in support of his claim and the assessee could not ask the AO to summon the auditor. We, further note the appointment letter of another chartered accountant, namely, Shri Raj Kumar Jain, copy placed at p. 11 of the paper book, in which he sought no objection from Shri R.B. Soni and the later chartered accountant has....