TaxTMI 
TaxTMI 
2021 (12) TMI 435
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....1), New Delhi dated 27.12.2017 was dismissed. Therefore, the assessee is in appeal before us as per ground of appeal as under:- "1. That assessment framed as well as C.I.T.'s (Appeal) order are unlawful and are against the natural law of justice. 2. That learned C.I.T. (Appeal) has reiterated the facts given by learned A.O. in Asstt. order, while the A.O. has initiated the proceedings when it was verge to time-barred, thus, blindly followed the original Asstt. order. 3. The learned A.O. had failed to discharge his liability in spite of sufficient time available with him and put it on the shoulders of the appellant for not discharging his liability. 4. That the maximum requirements to justify the quest....
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....rified creditors and has not produced books of account for verification. The ld AO asked the assessee to produce the supporting evidence, original bills, bank statement to show that the payment to the respective creditors and the details of VAT return where the sales has been shown. The ld AO further asked that if the above information is not provided he would be constrain to adopt net profit ratio @1.34%. 4. The assessee on 27.12.2017 submitted the confirmation of the credits, DVAT return of the assessee. The assessee further stated that assessee himself has been assessed u/s 143(3) for Assessment Year 2013-14 i.e. subsequent to this assessment year accepting the book results. 5. The ld AO once again rejected the contentions of the a....
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....mitted that the adoption of the gross profit ratio 1.34% by the ld AO is unjustified. On the merits of the addition he submitted that the confirmation of the creditor was produced. The detail of the VAT return of the assessee for this assessment year was also shown to the ld AO. There is no mismatch was found and therefore, rejection of books of account is not correct. 7. The ld DR vehemently objected and stated in this year there is a specific finding of none genuine creditors, therefore, the results of other assessment here's cannot be considered for the purpose of the working out gross profit. He further stated that even if the chart submitted by the assessee at page 49 is considered, the net profit ratio for Assessment Year 2013-14, ....
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....oss profit ratio on account of administrative expenses. There is no dispute on such expenditure. The addition has been made after rejecting the books of account of the assessee for the reason that the assessee has not been able to justify of the same of the creditors. Therefore, it would be appropriate to restrict the addition on the basis of the gross profit ratio. The gross profit ratio of undisputed four years other than impugned assessment year case 5.42%. Admittedly assessee also submitted the quantitative details of the purchase and sales which were also in conformity with the VAT return filed by the assessee. With respect to the nonavailability of the creditors it may be possible as contended by the assessee that either the creditors....
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.... it is nonavailability is only for the reason that it has sifted its business premises. Assessee also submitted the address of these party once again which is placed at page number 28 of the paper book. With respect to MInar saree Center that it has continued its activities from its head office and the assessee has also given a new address at J -23 /52A, Kamal Pura Bari Bazar , Varansi. With respect to Astha Imepex assessee submitted the address of its proprietor and his permanent account number. The learned assessing officer from the records it is apparent that did not try to locate this parties. The confirmations of these parties are placed at page number 22 - 25 of the paper book. Undisputedly the accounts of the assessee are audited Und....