2013 (9) TMI 765

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.... appeal on the following substantial questions of law: 1. "Whether considering the facts and circumstances of the case, the Tribunal erred in law in holding that no finding had been recorded for rejecting the books of account, only by relying on the decision of Andhra Pradesh High Court in the case of ITR 442, even though the Assessing Officer had discussed in detail the defects in the books of account before rejecting them under section 145 (3) and the Apex Court has in the case of Tuticorin Alkali Chemicals & Fertilizers Ltd. vs. CIT; [1997] 227 ITR 172 laid down that the income relating to a particular year is to assessed in that very year. 2. Whether the Tribunal erred in law by holding that the Department is bound to accept the syste....

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....ntial amount as advances from those commission agents. The assessee was counting for such consignments sale as and when those commission agents were sending sale notice detailing the actual amount of sale consideration and making necessary entries in the books of account. Notices under section 133(6) were sent, out of which, 12 did not respond. Even in the cases, where response was made, discrepancies were found. So, the explanation given by the assessee pertaining to anomalies was not accepted. In these circumstances, the A.O. has rightly invoked the provisions of Section 145 (3) and made the addition on estimate basis. On specific query from the Bench, learned counsel for the department accepted that the assessee was following the same s....