2012 (8) TMI 365

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.... he is unable to attend on 14-6-2012. After considering the adjournment petition dtd. 29-11-11 we observe that on last date of hearing i.e. on 3-4-2012 the case was adjourned to 14-6-2012 at the request of the assessee's counsel. This being so and in the absence of any corelation between the adjournment letter dtd. 29-11-11 and the date of hearing i.e. 14-6-2012, the adjournment petition filed by the assessee is therefore rejected. It was decided to dispose of the appeal ex parte qua the assessee on merits after hearing the ld. D.R. 3. Briefly stated facts of the case are that the assessee company is engaged in the business of manufacturing, trading and export of hosiery and textile item. It filed the return of income declaring total inc....

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....ecords of goods was maintained and books of accounts are audited. It was further submitted that since the purchases pertain to financial year 2004-05, hence it is more than two years and hence the present addresses of these parties are not available. However, these goods were utilised for manufacturing of finished goods which are ultimately exported and profit thereon has been shown in the return of income. It was therefore submitted that no adverse inference is warranted. However, the A.O. did not accept the assessee's explanation. He observed that on the same issue and on the same set of facts, the addition was made by the A.O. in the A.Y. 2004-05, therefore, the A.O. following the said decision, applied G.P. rate of 3% on the purchase....

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....ases of Rs.9.36 crores as against the addition of 5% on cash purchases made by the A.O. In the absence of any material show that the purchases are vouched and verifiable and considering the fact that in the A.Y. 2004-05, the Tribunal has restricted the addition to 2% of the cash purchases, we are of the view that in the interest of justice it will be fair and reasonable if the addition of 1% of the cash purchases is sustained and, accordingly, we sustain the addition of Rs. 7,01,020/- being 1% of cash purchases of Rs. 7,01,02,050/-. We hold and order accordingly. The ground taken by the Revenue is, therefore, partly allowed. 9. Ground No. 2 is against the deletion of disallowance of Rs. 28,359/- made on account of delayed payment of e....