2015 (5) TMI 82

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.... notice on behalf of assessee. 2. These appeals are arise out of the common orders dated 21st July, 2014 passed by the Income Tax Appellate Tribunal (ITAT) in ITA Nos. 3688/del./2012, 3689/del./2012, 3690/del./2012, 3691/del./ 2012 and 3867/del./2012. 3. The question in all these appeals is the acceptance of the assessee's appeals with respect to rejection of books of accounts and addition of 1% G.P. on uniform basis for AY 2002-2003 to 2007-2008. 4. The brief facts are that the assessee deals in processing and trading of rice, pulses and food products. Certain search was carried out in its premises on 5th December, 2007, after which a notice was issued to the assessee under Section 153A of the Income Tax Act, 1961 on 27th January,....

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....sclosed anywhere that the qualitative details at all relevant points of time are maintained in a stock register etc. Counsel emphasises the fact that the AO had found that such qualitative details were not reflected in the stock register. He argued that the quality of rice is crucial in the ultimate prices. Learned counsel stated that depending on the quality the cost may vary between Rs. 30/- to Rs. 300/- per kilogram and having regard to these, the AO's decision ought not have been interfered with by the ITAT, since it was based on an exhaustive appreciation of the circumstances. 8. Learned counsel for the respondents, on the other hand, rely upon the decision of the ITAT and submitted that in the previous assessment years 1999-2000 an....

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.... The by-products were also sold and sales were duly recorded. According to the industry norms apparently the yield rates notified at 61.90% were considered reasonable. The assessee had relied upon a circular issued by Punjab Mandi Board, which notified the milling yield rate as 61%. This too was on record and was duly taken note of by the ITAT. 10. This Court notices that the decision in case of Shankar Rice Companies (supra) dealt with somewhat similar, if not identical facts. Like in the present case, the assessees in those cases also maintained regular books of accounts, which were duly audited. All statutory registers, mandatory local laws too were kept on regular basis. The sales and purchases documents were regular. In the present ....

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.... working, the assessee's employee maintained some or other record at various places. Merely because some papers have been found which are not disputed to be made by some employees, a conclusion is being arrived at that assessee is not deliberately showing the quantitative details. This is an utter disregard of the fact that all the books of accounts were found and seized and there is no quantitative tally in the account books. Therefore, the conclusion of the Assessing Officer in this behalf to reject the books is purely based on surmises and conjectures. Based on the surmises and conjectures, ad hoc addition of 1% of sales have been made which also is again a fictional work of guesswork and conjectures based again on already indicated ....