TaxTMI 
TaxTMI 
2021 (4) TMI 242
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....ignored the following premises on which the assessment was framed: a) The AO has rejected the books of accounts under sec. 145(3) and after the rejection also the AO has framed the assessment under section 143(3) instead of section 144. b) After the search action under section 132 and consequent upon the search, the assessment has to be framed on the basis of the information available after the search, not upon the rejection of books of accounts. 2. That the Ld. CIT (Appeals) has erred in confirming the additions of Rs. 72,08,460/- made on account of the difference in whereas the purchases have been duly accounts for in the books of accounts and Profit & Loss accounts were prepared from these books of the accounts....
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....e Assessing Officer. In response to this, the assessee submitted that the surrender was made in the heads as shown in the return. The Assessing Officer observed that confirmations from buyer M/s. Vishal Traders and M/s. Sanjay Traders were not field and even the original bills of these parties were not produced by the assessee. The Assessing Officer further observed that the assessee fail to file or furnish any transport bills for the goods which are claim to be purchased from M/s. Vishal Traders and M/s. Sanjay Traders. The Assessing Officer further observed that the copy of accounts of M/s. Vishal Traders shows that no payment was made to the said party during the year and whole amount of Rs. 53,41,440/- was shown outstanding. In response....
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.... also. After giving effect to sale bills there was no difference in stock as explained before the AO as well as during statement recorded on 02.12.2008 itself. Further submission dated 13.10.2008 and 20.12.2010 (PB 22-23 and 57-59) also filed from pages 18 to 23 in PB - 2. The ledger account of the parties were also placed at PB - 361 and 362 also filed at Page 24 and 25 of PB - 2. 4. It is submitted that the assessee by letter dated 13.10.2008 before filing any income tax return made an offer of surrender of Rs. 25,00,000/- towards the value of stock that was found in excess of the stock shown in the books of account to cover-up any of the discrepancy found in papers and materials seized by the department. (PB 22-23 and also 18-19....
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.... is submitted that during the course of assessment proceedings various ledger accounts, cash book, bank statement, sales account of the various items, all the bank accounts of the related parties were filed and the AO did not find any discrepancy in the account after noticing various transactions of purchase and sales through the bank account. 7. It is submitted that there cannot be addition twice by the AO for the same cause unless the AO bring some material on its own as the material placed by the appellant was supported by the evidence and the AO cannot reject the same merely on doubts. The income declared by the appellant was already much more than he has to declare but in order to cover up all the discrepancy, additional incom....