TaxTMI 
TaxTMI 
2014 (5) TMI 1102
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....ase as well as law on the subject, the learned CIT(A) has erred in passing ex-parte order without giving proper opportunity of hearing to assessee. 2. On the facts and in circumstances of the case as well as law on the subject, the learned Commissioner of Income-tax(Appeals) ahs erred in confirming the action of the Assessing Officer in disallowing Rs. 7,57,807/- out of purchases. 3. On the facts and in circumstances of the case as well as law on the subject, the learned Commissioner of Income-tax (Appeals) has erred in confirming the action of the Assessing Officer in disallowing Rs. 43,152/- out of expenses. 4. On the facts and in circumstances of the case as well as law on the subject, the learned Commissioner of Income-tax(Appe....
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....re the AO, therefore AO held that purchases could not be verified and by relying the order of Vijay Proteins Ltd. reported at 55 TTJ 76, he disallowed 25% out of the total purchases of Rs. 30,07,228/- which comes to Rs. 7,51,807/-. (ii) Disallowance out of expenses The assessee claimed in the P&L A/c. total expenses of Rs. 2,76,021/-. In the absence of books of accounts, but on the basis of computer print-out submitted by the ld.counsel for the assessee about the expenses, the AO disallowed Rs. 43,152/- on account of non-verifiable. (iii) Addition on account of difference in bank deposits and sales It was found by the AO thatin current bank Account No.0094- A42706-050 with Indus Ind Bank Ltd., Bardoli Branch the total deposits w....
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....ng had been fixed on four different occasions but no submissions have been made on any occasion. Since the A.R., during the course of assessment, expressed inability to produce any books of accounts or supporting evidences, like bills, vouchers etc. and no submissions have been made during the appeal proceedings, I am constrained to uphold the action of the A.O. in disallowing 25% of purchases and 25% of expenses other than salary and bank interest. The addeiton amounting to Rs. 7,k51,807/- and Rs. 43,152/- are confirmed." (Regarding Ground No.4 of this appeal): "4. Ground No.3 is against the A.O. making an addition of Rs. 17,31,629/- on account of difference in credits in bank account and sales. During the course of assessment procee....
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....tion given along with the ground of appeal is unacceptable as no books of accounts were produced before the A.O. and the A.R. had expressed his inability to produce any books of accounts and supporting details. The bank book was also not produced before the A.O. It has neither been produced before me despite several opportunities. No details of any agriculture income has been provided with the Appeal Memo. No exlanation as regards receipt from Mahuva radish Sahakari Khand Udhyog Mandli has been submitted. In any case, this is insufficient to justify the total difference. The nature of credit entries in the bank therefore remained to be explained as to their nature and source. Therefore, the action of the AO in considering the difference in ....
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....not been disclosed. In the absence of such finding of fact the question whether entire sum of undisclosed sale proceeds can be treated income of the relevant assessment year answers by itself in negative. The record goes to show that there is no finding nor any material has been referred about the suppression of investment in acquiring the goods which have been found subject of undisclosed sales. He further relied upon the decision of Hon'ble ITAT Ahmedabad (camp at Surat) in the case of M/s.Om Carting vs. ITO in ITA No.3375/Ahd/2007 for AY 204-05, wherein it was held that estimation cannot be irrational or arbitrary. He further relied upon the decision of ITAT "B" Bench Ahmedabad in the case of Kesharbhai Ghamarbhai Chaudhary vs. ITO repor....