TaxTMI 
TaxTMI 
2015 (2) TMI 721
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....at the assessee-appellant is carrying on the business of manufacturing of silver and metal beads, toggles, chains, other articles including semi-precious and precious stones and is claimed to be a 100 per cent. exporter of goods. The said business is being carried on as a partnership firm. During the course of the assessment proceedings it was noticed by the Assessing Officer that the assessee declared the gross profit of Rs. 1,12,12,897 on the total turnover of Rs. 12,74,65,482 resulting into the gross profit rate (for short "the G. P. rate") at the rate of 8.79 per cent. against the gross profit rate declared in the immediate preceding year at 11.4 per cent. During the course of assessment proceedings, the Assessing Officer observed that ....
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....cordingly, thereafter, the Assessing Officer again issued a show-cause notice to the assessee on December 8, 2008, reiterating the fact that since the notices (summons) have been returned back by the postal authority unserved or remained uncomplied with. Therefore, the assessee was directed again to prove the genuineness of the transactions. It was also stated by the Assessing Officer that survey came to be conducted in 9 out of 10 parties from whom the assessee had purchased goods and during the course of the survey one Shri Mitthu Lal Saini of M/s. Royal Gems and Arts from whom the assessee had purchased goods stated that he was not doing any business but only issued sale bills. Similarly, one Shri Anil Kumar Lalwani admitted that M/s. An....
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.... of the Act, however, partly allowed the appeal and directed the application of a gross profit rate of 11 per cent. as against 14 per cent. applied by the Assessing Officer after perusing the previous history of the assessee. 4. Dissatisfied with the deletion/sustenance of the gross profit rate, both the Revenue as well as the assessee preferred cross-appeals before the Tribunal. The Tribunal also upheld the finding of the Commissioner of Income-tax (Appeals) and dismissed the appeals of the Department as well as the assessee, which order has been assailed before us by the assessee. 5. None appeared on behalf of the assessee. 6. We have gone through the impugned order as well as the orders passed by the Assessing Officer as well as....
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....essee in support of this contention. Books of account were rejected by the Assessing Officer and we have confirmed the rejection of the books of account. Therefore, it has to be seen and ascertained that how the purchase price is increased and the sale price remained constant or slightly higher. The onus is on the assessee to prove this fact. The assessee has not filed any instance of comparable sales case, neither has given the reasoning how the purchase price has been increased. A query was raised by the Bench that on a particular date the assessee is showing purchase at Rs. 10,400 which remained unverifiable but after a gap of 5-6 days the assessee has shown purchase at Rs. 10,700 per kg. from a party which is verifiable. In four days, t....
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.... 7. We have already noticed the fact that the Assessing Officer rejected the trading results and invoked the provisions of section 145(3) on the defects noticed by the assessee and in addition to that he came to the conclusion that despite the assessee having been directed to produce the parties from whom the assessee purchased goods for verification but despite ample opportunities having been granted, the parties were not produced, particularly in view of the fact that the summons at the addresses given by the assessee himself either came back unserved and returned unserved by the postal authorities or if served none of them presented before the Assessing Officer. It is the prime duty of an assessee to produce the sellers from whom he ha....