TaxTMI 
TaxTMI 
2018 (3) TMI 1463
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....wed, forwarding expenses and quality difference. The learned Assessing Officer is not justified in making addition at Rs. 3532831/- by disallowing expenses such as discounts allowed, forwarding expenses & quality difference and the learned CIT(A) is also not justified in confirming the addition at Rs. 2366735/-. The appellant has maintained regular books of accounts duly audited under Sec.44AB of I.T. Act, 1961. The addition made by the learned Assessing Officer and confirmed by the learned CIT(A) may kindly be deleted. 3. The issue raised in the present appeal is against disallowance of Rs. 35,32,831/- by the Assessing Officer which was restricted to Rs. 23,66,735/- by the CIT(A). 4. Briefly, in the facts of the case, the assessee ....
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....at the assessee had shown gross loss of Rs. 13,12,385/- in the trading of agricultural products / food grains against turnover of Rs. 11,83,36,799/-. The assessee before the CIT(A) cited a comparable case vis-à-vis rate of profit. The CIT(A) was of the view that onus was upon the assessee to produce evidence and he has failed to produce the same with regard to freight and forwarding expenses, discount and batav and Tur claim expenses. In the absence of the same, the CIT(A) observed that the Assessing Officer was compelled to disallow said expenses. However, in the final analysis, he held that application of GP rate @ 2% on total turnover of Rs. 11.83 crores amounting to Rs. 23,66,735/- would meet the ends of justice. He thus, restric....
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....d incurred loss of 15,32,732/- and hence, the return of income was not filed. The assessee has in the Paper Book filed, copy of audit report for assessment year 2010-11 which is dated 28.09.2012 and in the statement of facts, it is also mentioned that the management of the company was managed by the staff who appointed Mr. Ajeet Golecha, Chartered Accountant for audit, as all the Directors were having their own business. The assessee had maintained computerized books of account, which were corrupted. The assessee further claims that this fact was not disclosed by staff of the company and also the auditor. It came to the knowledge of the Directors in September, 2012. Thereafter, the company had again completed computerized books of account f....
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....ss of assessee has been closed down and there are no funds and the assessee is handicapped. The learned Authorized Representative for the assessee before us pointed out that there were losses in the business and because of aforesaid addition, substantial demand has been raised against the assessee. In the facts and circumstances of the present case, where the assessee had not originally filed its return of loss, then the plea of assessee that it had incurred losses is not backed by any evidence whatsoever. The year under appeal is assessment year 2010-11 i.e. financial year 2009-10 and the assessee has not filed any evidence of the loss of the year at Rs. 15,32,732/- as mentioned in the statement of facts. Even the books of account evidenci....