TaxTMI 
TaxTMI 
TaxTMI 
2018 (12) TMI 1909
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....s of account and estimation of profit made by AO without any premise arbitrarily. 3. That the Ld. CIT (Appeals) has erred in confirming addition of Rs. 1000000.00 on account of capital introduced by members treating it as unexplained cash credit. 4. That the addition / disallowance made by AO and confirmed by Ld. CIT (Appeals) are highly excessive." Appellant by Shri Ashish Jaiswal, Advocate Respondent by Shri C. K. Singh, D.R. Date of hearing 03/12/2018 Date of pronouncement 07/12/2018 2. At the outset, Learned A. R. submitted that the Assessing Officer has wrongly rejected the books of account and has estimated the profits of the assessee. It was submitted that the assessee had maintained proper books of account and the accounts wer....
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....ssessee and reliance in this respect was placed on an order of Hon'ble M.P. High Court in the case of CIT vs. Metachem Industries [2000] 245 ITR 160 (MP). 3. Learned D. R., on the other hand, supported the orders of authorities below. 5. I have heard the rival parties and have gone through the material placed on record. As regards the first issue of rejection of books of account and estimation of profit, I find that in assessee's own case for assessment year 2011-12 & 2012-13 in I.T.A. No.741/Lkw/2017 and 338/Lkw/2017 respectively, the similar issue of rejection of books of account and estimation of profits has been decided in favour of the assessee. I find that in those years the Tribunal has held that cash book, ledger and other doc....
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.... is on record. All the purchase bills along with TCS certificates in support of purchases made by the assessee were also produced before the Assessing Officer. Day-to-day sales made and accounted for in the cash book at the end of the day were also before the Department and has placed before us in the paper book. 10. In the case of Hem Raj vs. ACIT (supra) also, assessee was engaged in the business of liquor and sales were done in cash. The Assessing Officer has rejected the books of account maintained by the assessee on the ground that assessee has not maintained day-to-day stock register and sales record. It was held by the Co-ordinate ITAT Chandigarh Bench that all over the country in liquor trade, it was the normal practice of not iss....
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....be accepted. 12. The Hon'ble jurisdictional High Court in the case of CIT vs. Prayag Wines (supra) has held that it is not necessary that cash memo is required to be issued for each and every sale and the books of account cannot be rejected on the very basis that only one consolidated cash memo was issued at the end of the day and that there were no cash memo for each and every sales. The crux of the decision was that if the consolidated sale figure is given in the single statement in the form of cash book where day-to-day sales are recorded, in such circumstances for every sales cash memo is not required. 13. We find in the instant case of the assessee, cash book and ledger were with the Department. The purchase bills along with TC....
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....d. In the present year also the Assessing Officer has rejected books of account on the basis of lower gross profit rates. The findings of Assessing Officer are reproduced below: "4.3................Here in this case, the assessee has declared the gross profit rate of 12.07% for this year on the total turnover. In the immediately preceding year i.e. A.Y.2012-13, the income was estimated on the similar grounds enhancing the gross profit rate from declared G. P. rate of 11.59% to 12.5%. This year the gross profit rate has been declared at 12.07%. Considering the facts of the case as narrated in preceding Paras and giving justice to the assessee the gross profit rate is being estimated this year also @ 12.5%. The difference in the declared G....