TaxTMI 
TaxTMI 
2015 (12) TMI 620
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....business of manufacture and sale of plastic and rubber goods. Though the returns were processed for the years under consideration under section 143(1) of the Act, consequent to the information received by the AO from the Sales Tax Department giving names and addresses of persons who have provided entries/bogus purchase bills to a large number of tax payers, the AO reopened the assessment by issuing notice under section 148 of the Act and after considering the issue exhaustively he observed that the assessee has not made any effort either to produce the parties or to furnish the exact whereabouts of them to prove the genuineness the purchase from Top Shop Trading Company Pvt. Ltd., Mahavir Enterprises, etc. Assessee neither produced the sell....
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.... ascertain the correct amount of income from the records/books maintained by the assessee. He further observed that the onus is on the assessee to prove the claim of expenditure and in the absence of proving the same the AO was justified in making the addition. He also observed that the assessee failed to furnish quantitative and qualitative details of opening stock, purchases, sales and closing stock, item-wise and party-wise and thus the books of the assessee are not complete in every respect in which event it is not possible to compute the correct amount of profit. At this juncture the assessee made an alternative contention that if it is assumed that the purchases are not proved, since the sales were made against such purchases the reas....
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.... purchases, will be reasonable. Accordingly, I hereby confirm 25% disallowance of above purchases i.e. Rs. 80,240/- [25% of Rs. 3,20,965/-] and delete the balance amount of Rs. 2,40,725/- (Rs.3,20,965- 80,240/-), out of total disallowance of Rs. 3,20,965/-. Both the ground of appeal are, therefore, decided accordingly." 7. However, with regard to the interest charged under section 234A, 234B and 234C of the Act the learned CIT(A) observed that in the light of the decision of Hon'ble Supreme Court in the case of CIT vs. Anjum M.H. Ghoswala 252 ITR 1 there is no discretion to the AO except to charge interest as per the procedure prescribed therein and therefore directed the AO to charge interest based on the addition as confirmed by hi....
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....s. Learned counsel furnished summary of GP earned for the assessment years 2008-09 to 2013-14 which is extracted herein below: - A.Y. Total Sales Gross Profit 2008-09 1,48,50,562 22.34% 2009-10 1,31,17,898 19.49% 2010-11 1,48,35,786 19.12% 2011-12 1,39,93,958 18.85% 2012-13 1,31,81,807 21.45% 2013-14 1,07,21,090 22.46% 11. We are concerned with A.Ys. 2009-10 and 2011-12 wherein the assessee has declared gross profit of 19.49% and 18.85%. For A.Y. 2008-09 she declared 22.34% GP and for 2013-14 it was 22.46%. Thus by taking into consideration the additional benefit, if any, availed by the assessee by making purchases in the grey market, I am of the view that an estima....