TaxTMI 
TaxTMI 
2013 (6) TMI 155
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....s profit u/s 145(1) of the I.T. Act, 1961 by stating that the AO has not been able to bring any material evidence on record to indicate the book results maintained by the assessee were not eligible. ii. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) erred in deleting the disallowance of Rs. 20,97,355/- made u/s 145(5) without appreciating the fact that the explanation given by the assessee is general in nature and no specific reasons have been furnished supported with documentary evidences for lesser gross profit. 2. On the facts and in the circumstances of the case and in law, the impugned order of the Ld. CIT(A) is contrary to law and consequently merits to be set aside and that of the Assessing Officer be....
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....e quantum of gross profit came to be at Rs. 1,89,04,479/- as against Rs. 1,68,07,124/-, declared by the assessee, making an addition of Rs. 20,97,355/-. 5. Aggrieved, the assessee approached the CIT(A), wherein, the assessee pointed out that the books of accounts that were asked for by the AO were furnished for verification, as and when asked for by the AO. It was also submitted that the discrepancy as pointed out by the AO, that the purchase bills of January & February were entered into the books of accounts, in the month of March were duly reconciled as per the details filed before the AO. 6. Before the CIT(A), the assessee also submitted that the AO took a wrong inference, the assessee could not produce details of the consumption v....
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.... gave a relief, as claimed by the assessee. 8. Against this order, the department is in appeal before the ITAT. 9. Before us, the DR reiterated the observations of AO, and relied upon by the AO : "The assessee was therefore asked to furnish the yield of the finished product against the consumption of the basis raw material. The assessee could not furnish the yield of finished product. The consumption and production details have not been produced. The stock register has not been produced. The sales bills have not been produced. In view of the above the books of the assessee are not reliable and are required to be rejected as per provisions of section 145(1)". he also made the submission that the AO was correct in rejecting the bo....
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.... Form 3CD has been mentioned. In this point, i.e. 9 b & c, we find that the Auditors have mentioned that cash and bank book, ledger, sales and purchase register, inventory register and journal have been maintained by the assessee. In accordance with this, it has also been mentioned that all these books and details have been maintained in our computer system and the Chartered Accountant have given a certificate as per Point no. 9c that they have been examined. This, under normal circumstances, leave no room for the AO to come to a conclusion that the assessee has not maintained proper books of accounts. The AR, therefore, pleaded that the decision given by the CIT(A) does not suffer from any infirmity and it should be sustained. 11. We ha....