TaxTMI 
TaxTMI 
TaxTMI 
2015 (10) TMI 2117
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....A) has erred in allowing the appeal of the assessee and loss of Rs. 18,74,33,043/- incurred during the year even though Books of Accounts were not produced? 2. Whether on the facts and circumstances of the case and in law, the Ld.CIT(A) has erred in not giving credence to the method adopted by Assessing Officer of evaluating G.P. on the basis of G.P. ratio of the previous two years which was most logical method in absence of Books of Account mandatory for assessee to be maintained and preserved? 3. The appellant craves leave to amend or alter any ground or add a new ground which may be necessary." 3. The solitary issue raised in both the grounds is that whether the Assessing Officer was justified in rejecting the return of income fi....
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....e computers and the assessee took another print out of these books of accounts from the computer. These were produced to the Assessing Officer for his verification. The assessee also arranged confirmations and other subsidiary records before the Assessing Officer. It was requested to the Assessing Officer during the assessment proceeding that direct verification could be made by the Assessing Officer with the suppliers and customers of the assessee. But the Assessing Officer did not agree with the request of the assessee and books results shown by the assessee were rejected. It was further submitted by the ld. Counsel for the assessee that the Assessing Officer was not justified in estimating the income at GP rate of past years because ther....
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....essing Officer estimated net profit of the assessee based upon GP rate of previous two years. It has been noted by us that books of accounts of the assessee are audited by the tax auditors. These audited accounts along with tax audit report was available before the Assessing Officer. The assessee submitted before the Assessing Officer that due to flooding caused by heavy rains, various records were destroyed and therefore, with a view to enable the Assessing Officer to make verification of the return filed by the assessee, the assessee collected various evidences from its suppliers and submitted the same to the Assessing Officer along with various accounts generated on the computer systems. It is noted from the records shown to us that asse....
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.... & interest received & Ledger extract of Interest Income. iv) Copy of 11 Nos. of TDS Certificate of Rs. 4,14,427/- 36 to 40 41 to 43 44 45 to 51 51 to 62 4. Copy of letter dated 17th October 2012 filed before ld. A.O. alongwith following documents :- i) Copy of acknowledgement of ITR ii) Computation of Total Income & Tax Calculation Statement iii) Copy of Tax Audit Report with all Exhibits iv) Copy of audited Balance Sheet & Profit & Loss A/c with all Schedules. 63 64 to 65 66 67 to 84 85 to 94 It has been further brought to our notice that the assessee also produced books of accounts including stock records maintained and generated on the computer system, which was verified by the Assessing Officer as well. Details of par....
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....e earlier years at higher rate prevailing at that time. Due to the aforesaid steep fall of more than 70% in the rate of goods traded by the assessee, gross loss was incurred by the assessee. 6. We have considered all these facts and circumstances very carefully. It is noted that due to the reasons beyond the control of the assessee, the main documents in the form of purchase bills and sale bills could not be submitted by the assessee to the Assessing Officer. The assessee made efforts and submitted ample evidences, as an alternative measure to substantiate the return and the final accounts submitted by the assessee. The documentary evidences and details submitted by the assessee contained sufficient information on the basis of which the As....