TaxTMI 
TaxTMI 
2017 (5) TMI 189
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.... learned Counsel for the appellant-assessee urges only the following two questions of law for our consideration: "(1) Whether on the facts and in the circumstance of the case and in law, the Tribunal is right in maintaining rejection of books of accounts under Section 145(3) of the Act for Assessment Years 2006-07 and 2007-08? (2) Whether on the facts and in circumstances of the case and in law, the Tribunal is correct in approving gross profit addition Rs. 12,15,244/for Assessment Year 2006-07 and Rs. 16,11,580/for Assessment Year 2007-08?" 3 It is admitted position between the parties that the facts and the law applicable for both the Assessment Years is identical, except the figures. Therefore, we refer to the facts ....
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....lls or vouchers produced to substantiate its claim of milk being sold as claimed in the books of accounts. Further, it records that Director of the Company had admitted that it had not maintained quantitative details nor Inward/Outward Register or consumption and production Register. Therefore, the appeal filed by the appeallantassessee was dismissed by an order dated 17th September 2010 of the CIT(A). (d) On further appeal, the Tribunal by the impugned order dismissed the appellant-assessee's appeal. It, inter alia, records the fact that production Register containing particulars of issuance and consumption is not maintained. The rejection of the appellant-assessee's books of Accounts under Section 145(3) of the Act cannot be fa....
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....r 200809, as under: " The Tribunal has decided the issue against the assessee on the premise and the ground that, the books pertaining to production, issuance and consumption have not been maintained by the assessee. Such a ground for rejection of books of account are nonexistent in this year, as we have already stated above that the books of accounts along with the register, which gives the entire details of day-to-day purchase, production / consumption and sales have been not only maintained but were also filed before the AO as well as CIT(A). Another reason for justifying the application of estimation of GP rate by the Tribunal, was that the assessee has failed to submit any details in support of sale of milk. On the contrary, t....
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.... law. Thus, not entertained. 5 Re Question No.(2): (a) The Assessing Officer after having rejected the books of account under Section 143(3) of the Act, proceeded to estimate the income of the Appellant-assessee. The Assessing Officer on the basis of the material on record and statements made during the search and survey proceedings, found that a sizeable portion of the milk shown as sale was actually used in making of the paneer and other milk products. The same was reflected as direct milk sales, as the gross profit was much less on sale of milks as compared to profit margin on sale of milk products. Accordingly, the Assessing Officer on the above basis estimated that gross profit @ 27% for Assessment Year 2006-07 and 22% for Assess....
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....held that a best judgment assessment does not give a license to the Assessing Officer to make a wild assessment but it must be a best judgment on the basis of available material and circumstances of the case. In this case, the estimate has been arrived at on the basis of the material on record and also various statements made by the employees and directors during search and survey proceedings. In fact, the Apex Court in the above case itself clearly lays down that when best judgment Assessment is done, to some extent there would be element of guess work and so far as estimate is relatable to some evidence or material, it cannot be said that the estimate, is perverse and/or wild. Thus, there is no merit in the above submission on behalf of t....