TaxTMI 
TaxTMI 
2013 (8) TMI 512
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....s compared to the immediate preceding year. 3. On the. facts and in the circumstances of the case, the Ld. CIT(A) has erred on facts and in law in deleting the addition of Rs. . 28,82,006/- made by the Assessing Officer on account of suppression of production of soap disregarding the fact that the assessee had failed to prove the genuineness of its claim and no documentary evidences were filed by the assessee. 4. On the facts and in the circumstances of the case, the Ld. CIT(A) has erred on facts and in law in deleting the addition of Rs. .13,79,544/- made by the Assessing Officer on account of freight, octroi and cartage expenses especially when the assessee had failed to discharge its onus to prove the genuineness of these expenses and is contrary to the decision of the Hon'ble Supreme Court in the case of CIT vs Calcutta Agency Ltd. (1959) 19 ITR 191 (SC) . 5. On the facts and in the circumstances of the case, the Ld. CIT(A) has erred on facts and in law in deleting the addition of Rs. .5,77,944/ - made by the Assessing Officer on account of rebate expenses even though the assessee had failed to discharge the onus that the expenditure was incurred wholly and exclusively....
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.... Rejection of Books of accounts:- "I have carefully considered the contentions of Ld AR and perused the order of assessment. It is observed that the Assessing Officer has merely proceeded on the previous pattern of assessing the manufacturing results of the appellant firm pursued by her predecessors without any new or fresh contribution on her part. The enquiries made by her predecessors and relied upon by her were in any case not very material to the overall action of rejecting the books of account under the provisions of section 145(3). On identical facts and circumstances prevailing in the instant case for the AY 2001-02, 2003-04, 2004-05 and 2005-06, I had held such rejection of the books of account which have been duly audited and the audit of which has not been disputed by the AO. at any stage of the assessment proceedings, to be invalid and legally untenable. Such finding of the undersigned has been fully upheld by the Ld. Jurisdictional Tribunal for these years. Thus the issue being a covered one, the rejection of the books of accounts u/s 145(3) is once again held to invalid. Addition due to fall in GP: "I have carefully considered the contentions of the Ld. A.....
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....in the assessment year 2001-02 to 2005-06 in the instant case, which has been deleted by the under-signed by my orders to date which have been also upheld by the Ld. Jurisdictional Tribunal in their orders upto the assessment year 2004-05. The AO. has merely repeated the history without bringing any fresh material on records to justify her action which is but a borrowing from the past records. Since the issue has been finally clinched by the Ld. Jurisdictional Tribunal, it being a covered issue, the addition made in the book results of the assessee at Rs.13,79 ,544/-, stands deleted. Rebate expenses:- "I have carefully considered the contentions of the Ld. A.R. and perused the order of assessment. It is found that the A.O.'s contribution in making such disallowance under the head of trade discount or rebate is only that she has disallowed the entire expenditure in toto as against the part disallowance made in the earlier year in the discount expenses paid to M/s Shakti Nigam. The disallowance is again without any fresh finding or valid arguments. No discrepancy has been found in the bills/vouchers produced and it has been rejected only in respect of the manufacturing results.....
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....lowances discussed above. 4. Aggrieved the revenue is in appeal before us. 5. At the outset, the Ld AR submitted that appeal of the Department is covered against revenue by ITAT order in the case of the assessee itself in earlier years for assessment year 2005-06 & 2006-07. He further relied upon the chart filed by him containing point- wise addition made by the Assessing Officer, relevant portion of Ld CIT(A) 's order and relevant portion of ITAT order. With respect to ground No.1 taken by the revenue he invited our attention to page 12 of assessment order and also took us to pages 3 to 5 of CIT(A)'s order and also invited our attention to page 19 of the ITAT order in respect of assessee itself for the assessment year 2005-006 & 2006-07. On the basis of these documents he argued that Assessing Officer had rejected the books of accounts by holding the same logic and since ITAT had already decided this issue in favour of the assessee. Therefore, under similar facts and circumstances, the first ground of appeal should be dismissed. 6. Similar arguments were advanced in respect of ground No.3 whereby addition on account of suppression of production made by the Assessing Offic....
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....ce, the books of accounts of the assessee are liable for rejection on this account as per the provisions of section 145(3). As I am satisfied that the said books of accounts do not give correct and complete picture of its affairs. 10. Similar findings were made in assessment year 2006-07. The relevant portion is at paper book page 93 at internal page 13 of assessment order. 11. During the year under consideration also, the Assessing Officer rejected the books of accounts by holding the same findings in a mechanical manner. The relevant findings of Assessing Officer are at page 12 of the assessment order. The facts and circumstances are same and rather wording used for rejection of books of accounts for three years is also same except yield. The Hon'ble ITAT in assessee's own case in assessment year 2005-06 and 2006-07 has already adjudicated on this issue as under:- 10.1 Coming to the rejection of books of accounts of some alleged discrepancy in packaging material etc. we see no substance. Assessee's books are properly maintained. No defect whatsoever have been found out. Assessee has supplied comparative chart or yield for ten years with sister concern along with comparis....