TaxTMI 
TaxTMI 
2015 (4) TMI 580
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....ether and are being disposed of by the single consolidated order. 2. All the afore cited appeals have been filed raising a common issue relating to the rejection of books of accounts and estimation of profit at 1.5% of the turnover by the Assessing Officer and sustained at 1% by the CIT(A). Since, facts are identical in all these appeals, for the sake of convenience, we will take-up the facts as involved in ITA.No. 304/Hyd/2013. 3. ITA.No.304/Hyd/2013 - A.Y. 2009-2010 : Briefly, the facts relating to the issue in dispute are the assessee a limited company. The assessee is engaged in the business of manufacturing of bearings, home appliances and trading of steel products. The assessee filed its return of income for the impugned assessment ....
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....ent by rejecting the book results under section 145(1) of the Act and estimated the income. The reasons for rejecting the books of accounts and estimating the income as enumerated in the assessment order are as under : "1. The assessee failed to produce the details of the purchase as called for in the above referred questionnaire. 2. The assessee failed to produce the details of the sales as called for in the above referred questionnaire. 3. The assessee failed to produce the details of ....
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....e immediately preceding year at 1.056%". 4. The Assessing Officer on the aforesaid basis came to a conclusion that due to various discrepancies noticed, it is not possible to arrive at the correct income of the assessee and the books of accounts cannot be said to be either correct or complete. Hence, book results cannot be accepted. The Assessing Officer further noted that the assessee has not maintained production register or consumption register in absence of which it is difficult to verify the production details. The Assessing Officer further observed that the assessee was also not able to submit delivery challans/delivery mode of purchase of goods and delivery of goods. With the aforesaid observation, the Assessing Officer proceeded to....
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....ssessing Officer to reject the books is eminently justified and is upheld". 6. However, so far as the estimation of income is concerned, the learned CIT(A) directed the Assessing Officer to estimate the income at 1% of the turnover. Being aggrieved of the Order of the CIT(A), the assessee is in appeal before us. 7. We have heard submissions of parties and perused the material on record. It is the contention of the learned A.R. that the estimation of profit at 1% is high and excessive considering the fact that the actual profit margin of the assessee is in the range of 0.9%. It has further been contended by the learned A.R. that the assessee has maintained all the books of accounts in its regular course of business and the books of account....
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....any which reads as under : "We hereby confirm that we shall regularly attend the hearings in respect of our assessment for the A.Y. 2009-2010 and submit all the necessary documents, records and information as required by the Assessing Officer for the completion of the assessment." 10. Considering the submissions of the parties and keeping in view the interest of justice, we allow one more opportunity to the assessee for production of its books of accounts and other documents before the Assessing Officer to substantiate its claim and accordingly, set aside the Order of the CIT(A) and remit the matter to the file of the Assessing Officer for denovo as....