2017 (1) TMI 1297

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....e Tax (Appeals), Muzaffarnagar, u/s 143(3) of the Income Tax Act, 1961 (in short "the Act") relating to A.Y. 2009-10. 3. Brief facts of the case are that the assessee filed her return of income declaring income of Rs. 1,73,190/- in the status of AOP. The assessee was engaged in the purchase and sale of country liquor. The Assessing Officer noticed that assessee had purchased and sold the country liquor having concentration of 36% V/V which were 180 ml. size, 200 ml. size, 375 ml. size and 750 ml. size. He noted that the assessee produced books of account but sales were not vouched. He further noted that assessee in his reply dated 13.10.2011 stated that M.R.P. of country liquor sold was as under :- i) M.R.P. of 180 ml. Rs.33/- ii) ....

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....n M.R.P. by supporting details and evidences. On the other hand in the light of the facts as discussed above it is not a case of making sales at less than M.R.P. The AO in the assessment order as well as remand report has cogently discussed the impugned issue which is not repeated here for the sake of brevity. The appellant has utterly failed in rebutting the findings of the AO as mentioned in the remand report. Thus it is held that the AO was perfectly justified in estimating GP @ 21% of total purchases at Rs. 21,36,863/- and thereby determining net profit at Rs. 6,23,970/-. The action of the AO is confirmed on this aspect. Grounds of appeal Nos.2 to 9 are dismissed." 6. Ld. CIT(A) partly allowed the assessee's appeal. Being aggrieved wi....

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....ture & surmises. 5. That the L'd A.O. is totally fail to confront any other case where G.P. is better then appellant's G.P. Even in comparable case of the same year, whose results are accepted by A.O. in the order u/s 143(3) of the I.T. Act, filed before L'd CIT (A} is totally ignored. The L'd A.O. has not summon the other dealer of nearby palaces for enquiring their G.P. & N.P. shown by them, after making the request of appellant. In these circumstances the L'd CIT (A) should have not confirmed the application of higher rate of G.P. 6. That the G.P. applied by A.O. is very very excessive when the appellant filed the comparable case & decision of Hon'ble High Court & Hon'ble ITAT in support of G.P. shown by him. In t....

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....sufficient to reject the books of account, where the books were otherwise verifiable. 9. In the light of the aforesaid, the order of the Assessing Officer rejecting the books of account under Section 145(3) of the Act and consequently, making an addition of the income on estimate basis was reversed by the Tribunal. Further, such addition made on estimate basis is a question of fact as has been held in Commissioner (Custom Vs. Stoneman Marble, (2011) 2 SCC 758, Vijay K.Talwar Vs. CIT, (2011) 1 SCC 673, New Plaza Restaurant vs. ITO, 309 ITR 259 (HP) and Sanjay Oil Cake Vs. CIT, 316, ITR 274 (Gujrat)." 8. In the case of Prayag Wines (supra), the Hon'ble Allahabad High Court relied upon the decision in the case of Commissioner of Sales Tax ....