TaxTMI 
TaxTMI 
2015 (10) TMI 2504
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....isallowed by the Assessing Officer. 2. The appellant prays that the order of CIT(A) on the above ground be reversed and that of the Assessing Officer be restored. 3.The appellant craves to leave amend or alter any ground or add any new ground, if necessary." Assessee,an individual,engaged in the business of cotton trading,filed his return of income on 30.09.2009,declaring total income of Rs. 50.52 lakhs. The AO completed the assessment u/s.143(3) of the Act, on 21.12.2011,determining the income of the assessee at Rs. 4,68, 38, 180/-. 2.Effective ground of appeal is about restricting the disallowance to Rs. 1,05,43,677/-,as against Rs. 3,95,75,587/- disallowed during the assessment proceedings. During the assessment proceedings, the AO f....
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....see u/s.68 of the Act. 3. Aggrieved by the order of the AO,the assessee preferred an appeal before the First Appellate Authority (FAA).Before him it was contented that during the year under appeal the assessee started trading in Kapas,that the farmers would accept payment in cash only,that he had produced the accounts,that all the corresponding sales were made to a big processing house, that he had received payment for the sold good by cheque, that assessee withdrawn huge cash for making payments against URD purchases,that necessary details of land holdings of the farmers were made available to the AO. After considering the submissions of the assessee the FAA observed that there was difference in the quantity details filed by him.So,he as....
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....t produce certified extracts of 7/12,that he had produced such extracts in 16 cases only, that the extracts showed that the farmers were the owners of the land,that in many a cases those farmers had taken loans from the banks, the revenue records did not prove that cotton was grown in their fields, that identity of seller of goods was not supported by any identification card, that the assessee's claim in absence of any proof of crop grown and the very fact that the 7/12 extract and form 8A could not be accepted, that these documents were downloaded from the internet and were not certified, same were liable to be rejected, that the assessee had failed to support his plea that goods had been purchased from persons who were farmers and grew ra....
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....diq (81 TTJ 769) and E-Land International P.Ltd.(supra).He further argued that the gross profit for the year was 2.04% as compared to 0.39% and 0.47% for the earlier two A.Ys., that the AO had not rejected the books of account, that if the contention of the AO were to be accepted the gross profit would be 7.42%.Departmental Representative (DR) supported the order of the AO. 5.We have heard the rival submissions and perused the material before us.We find that the FAA had,during the appellate proceedings directed the assessee to file various details with regard to the discrepancies highlighted by the AO in his assessment order, that after obtaining the reconciliation statement she had given a categorical finding of fact that in case of 44 pa....