2017 (6) TMI 912

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....on of the Books of Accounts of the assessee u/s 145(3) of the Income Tax Act, 1961 and thereby confirming the disallowance of Rs. 10,00,000/- and the reasons assigned for doing so are wrong and contrary to the facts and circumstances of the case, provisions of the Income Tax Act, 1961 and the Rules made thereunder. 2. On the facts & in the circumstances of the case and in law, the Ld. Commissioner of Income Tax (Appeals) erred in confirming the addition of Rs. 10,00,000/- which is calculated on adhoc basis and are done on account of mere rejection of books of account and the reasons assigned for doing so are wrong and contrary to the facts and circumstances of the case, provisions of the Income Tax Act, 1961 and the Rules made thereunder....

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....e three entities mentioned herein above and thereafter in turn sold to the assessee. The assessee paid the amounts which were credited in the bank accounts of the vendors. Thereafter these amounts were withdrawn/paid over/credited to another entity namely M/s Trading Maa Durga Company who in turn withdrew the same immediately. 4. The summons were issued u/s 131(1) of the Act which admittedly could not be served by the Inspector who reported that the names of the vendors appeared at the addresses given but they had left the premises. The Excise & Taxation Authorities confirmed that the purchases had been made by the vendors from M/s Maa Durga Trading Company. However, the enquiries made by the Assessing Officer revealed that M/s Maa Durga T....

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....unt of the purchases, the CIT(A) undertook a detailed analysis of the production figures for the previous assessment years and for the assessment year in question. Having done so, it arrived at the GP ratio and inferred that the appellant had received the material corresponding to the purchases made from the vendors. It was found for instance that the existence of the vendors stood confirmed by the Excise & Taxation Officer. The assessee would rely upon the PAN numbers which were now produced during the course of these appeals. The excise record was also analyzed by the CIT(A). The CIT(A) undertook a detailed analysis in coming to this conclusion. However, some of the crucial aspects have not been considered by the Tribunal. The Tribunal fo....