2017 (12) TMI 1250

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....rther evidences adduced by the assessee the orders of the learned Lower Authorities are against the law and facts of the case. 2. That the ld. AO grossly erred in invoking the provisions of section 145(3) of the I T Act, 1961 and the ld. CIT (Appeals)-3, Jaipur also erred in confirming the same without considering and appreciating the facts of the case. 3. That the ld. AO grossly erred in applying Net Profit Rate @0.67% and estimating the Net Profit in the amount of Rs. 20,51,429/- by making addition of Rs. 3,04,903/- thereof without there being any basis and the ld. CIT (Appeals)-3, Jaipur also erred in confirming the trading addition of Rs. 1,51,811/- without properly considering the facts and circumstances of the case. 4. That t....

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....ssee is in appeal before the ITAT. The ground No. 1 of the appeal is general in nature and does not require any adjudication. Hence, the same stands dismissed. 4. In the grounds No. 2 and 3 of the appeal, the issue involved is sustaining the addition of Rs. 1,51,811/- made by invoking the provisions of Section 145(3) of the Act. The ld. CIT(A) has decided the issue by holding as under: I have considered the observation made by the AO in the assessment order as well as submission filed by the A/R of the appellant. I find that the appellant not maintained quality-wise details of commodities traded. The trading expenses are not fully vouched. The A/R of the appellant did not make any argument in his submissions about the defects pointed out....

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....ng the provisions of Section 145(3) of the Act and also estimating the income. 6. On the other hand, the ld DR has relied on the orders of the authorities below. 7. Bench have heard both the sides on this issue. This is a fact that the assessee was not maintaining quality wise details of the commodities traded, therefore, it shall not be possible to verify the correctness of the valuation of the closing stock. Therefore, the Bench is of the view that the books of account were rightly rejected by invoking the provisions of Section 145(3) of the Act. Further the Assessing Officer made the addition of Rs. 3,04,903/- lacs and the ld. CIT(A) restricted it to Rs. 1,51,811/- lacs. After considering both the sides and the various other aspects of....