TaxTMI 
TaxTMI 
2014 (12) TMI 1283
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....taken up for hearing on merits. Accordingly, we proceed to decide the appeal on merits in succeeding paragraphs. 3. It is observed that the appeal filed by the assessee is late by a complete 25 days. The assessee has filed an application for condonation of delay duly supported by an affidavit. In paragraph (ix) of the aforesaid application, it is stated that at the relevant time the assessee was seriously ill and, therefore, he could not prepare the appeal memo and hence there was a small delay in filing the appeal before the Tribunal. We are satisfied that the assessee was prevented by sufficient cause from filing the appeal before the Tribunal in time. It is a well-settled law that the matter relating to condonation of delay should be ....
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....nue. The Assessing Officer recorded statement of the assessee on November 4, 2011. In his statement, the assessee has admitted that he has done business of steel rod for which he has not maintained books of account, purchase or sale bills or details of expenses with bills and vouchers. The Assessing Officer observed that one Shri Krishnadev Dev Singh replied to the query of the Assessing Officer that he had purchased steel rods of Rs. 3,00,000 from the assessee. The Assessing Officer also observed that one Shri Rupeh Lohiya has stated that he had received transportation payment of Rs. 28,800 from the assessee. The Assessing Officer concluded that the assessee was into the trade of purchase and sale of steel rods which was undisclosed and fo....
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.... Lakhmani Mewal Das [1976] 103 ITR 437 (SC). Once the Assessing Officers entertain a doubt as to the truth and correctness of the return, it is for the assessee to satisfy him by producing necessary materials. In the event of the assessee failing to establish the truth and correctness of the return, it is open to the officer to disbelieve the return. The power to reject the return and the evidence in support thereof is inherent and implied in the officer's power to enquire into the total income of the assessee. In the present case in hand, the appellant has admitted that he has no other source of income other than what have been disclosed in the return. Then, the Assessing Officer confronted the positive material gathered by hi....
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....lant cannot plead the activities or income thereon as casual in nature when the whole thing has been concealed to the Department. There were huge cash deposits and cash withdrawals and the appellant has not filed cogent evidence to establish each deposit and withdrawal as sale proceed and purchase or other expense on trading in steel rods. The Assessing Officer in his report dated February 27, 2013 has pointed out violation of section 40A(3) for cash purchases of steel rods of Rs. 44,47,125 and Rs. 32,08,817 from Raipur and Raigarh and out of the total purchases of Rs. 76,65,920 the appellant had the liability of Rs. 14,56,377 towards excise duty, education sale on excise duty, secondary and higher education cess, VAT, etc., after verificat....
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....the assessee himself accepted the credits in the bank account aggregating to Rs. 89,58,650 as turnover from sale of steel rods and debits and purchase and other expenses. There is no material on record to controvert the findings given by the lower authorities. Alternatively ShriSameer Singh, learned counsel for the assessee submitted that the gross profit rate of 8 per cent. applied by the Assessing Officer and confirmed by the learned Commissioner of Income-tax (Appeals) is on the higher side because the Assessing Officer has not cited any comparable case before applying ad hoc gross profit rate of 8 per cent. 8. In our opinion, there is substance in the alternative submission of Shri Sameer Singh, learned counsel for the assessee and, ....
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.... hon'ble Punjab and Haryana High Court in the case of CIT v. Aggarwal Engg. Co. [2008] 302 ITR 246 (P&H), wherein it has been held that once the net profit rate was applied, no further addition was called for in respect of purchases and introduction of cash in the facts and circumstances of the case. In view of the judgment of the hon'ble High Court of Punjab and Haryana, Shri Sameer Singh, learned counsel for the assessee submitted that in the instant case the gross profit rate has been applied after rejecting the book result and, therefore, no separate addition of Rs. 5,00,000 is called for in respect of purchase and introduction of cash. Shri Sameer Singh, learned counsel for the assessee also referred to the decision of the hon&....