TaxTMI 
TaxTMI 
2015 (4) TMI 712
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....Appeals) vide order dated November 6, 2009 granted partial relief to the assessee. Aggrieved by the aforesaid order of the Commissioner of Income-tax (Appeals), the assessee is now in appeal before us and has raised the following grounds : (1) The learned Commissioner of Income-tax (Appeals), Surat has erred in confirming the order of the, Ward 5(1), Surat in making various additions to the extent of Rs. 23,08,949 in aggregate, on misleading, baseless, arbitrary and perverse observations, is contrary to law and facts of the case and hence, liable to be quashed. (2) The learned Commissioner of Income-tax (Appeals), Surat has failed to see that the has made addition purely on estimation of the net profit ratio at 5 per cent. as against 3 per cent. as well as the turnover at Rs. 65,00,000 as against Rs. 53,85,639 offered by the assessee, without considering in the right perspectives the past records of the assessee as well the evidences/documents/materials/explanations furnished through various written submissions (attached as forming part of the statement of facts), while accepting the lopsided and factually incorrect version of the learned Assessing Officer and hence, the addition....
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....sales at Rs. 65 lakhs and the net profit at 5 per cent. was worked out at Rs. 3,25,000 and added to the income. Aggrieved by the order of the Assessing Officer, the assessee carried the matter before the Commissioner of Income-tax (Appeals). The Commissioner of Income-tax (Appeals) after considering the submissions of the assessee granted partial relief to the assessee by holding as under : The second grievance has two points of agitation. In absence of any definitive evidence for turnover-which the appellant himself had given on estimate basis, ostensibly on account of destruction of books and other relevant records-the Assessing Officer show-caused the appellant for enhancement of turnover to Rs. 65,00,000 in place of Rs. 53,85,639 (The claimed precise and accurate amount is surely intriguing in the absence of records). The Assessing Officer noted that in the assessment year 2004-05 the appellant had shown Rs. 60,38,392 as turnover. Secondly new assets and equipment were purchased. The sale of farsan items has very large cash component. Similarly expenditure also consists of mainly cash. Possibility of manipulation, i.e., suppression of sale proceeds and inflation of expenses is....
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....arned Departmental representative on the other hand submitted that though the assessee has claimed to have worked out the income on the basis of figures of sales and purchase shown in the returns filed under Gujarat VAT but the copies of the same were not furnished before the Assessing Officer, though the Assessing Officer had called for the same. He further submitted that when majority of the sales are in cash only the credit in the bank account could not be accepted as the total turnover of the business. He further pointed out that the assessee was also having current account with HDFC Bank but no part of credits from the aforesaid bank has been shown turnover by the assessee. In view of the aforesaid facts, he submitted that the Assessing Officer was fully justified in rejecting the books of account and estimating the profit of 5 per cent. 7. We have heard the rival submissions and perused the material on record. It is an undisputed fact that the books of account were not produced by the assessee before the Assessing Officer and the purchase and sales figures were claimed to have been based on the returns filed under VAT but the copies of the same were not submitted before the ....
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..../69A/69B held the amount of deposits of Rs. 21,12,915 to be income of the assessee and made addition thereof. Aggrieved by the order of the Assessing Officer the assessee carried the matter before the Commissioner of Income-tax (Appeals). The Commissioner of Income-tax (Appeals) upheld the order of the Assessing Officer by holding as under : "The third point relates to an addition of Rs. 22,12,915 treating the turnover/sale of good as unexplained cash credit, appearing in HDFC bank account. The appellant was asked to furnish full details and explain the same. The appellant stated that cash deposited in the bank was used for payment for purchases and also agreed to furnish the confirmation of purchase parties. The appellant also agreed to offer the income at 3 per cent. considering all the credits as his sales. The Assessing officer dissatisfied with appellant's explanation went on to make addition as unexplained cash credit for the detailed reasonings given in paragraph 4 of the assessment order and relying upon various judicial citations. As pointed out by the Assessing Officer, when the app....
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....parties supplying the goods so that the assessee could make immediate payments. He further submitted that the omission to disclose the bank account was not intentional as the assessee has shown the bank account in the balance sheet in earlier years and subsequent years. The learned authorised representative thus submitted that the entire credits since represents the sales. He further submitted that the entire sales cannot be considered as this income but only the net profit embedded in it can be considered as income. Since the assessee has shown the net profit of 3 per cent. on sales, only the profit portion be considered as income. He further submitted that the Commissioner of Income-tax (Appeals) has noted that Poonam Proteins from whom the assessee had made purchases has not confirmed the transactions and therefore the assessee's submissions of making purchases cannot be accepted. The learned authorised representative pointed out to the confirmation placed at page 53 of the paper book which contains the confirmation from Poonam Proteins. The learned authorised representative thus submitted that the payments from the HDFC account has been used to make payments and therefore t....