2021 (12) TMI 1066

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....at the Ld. CIT (Appeals) has erred in allowing the appeal partly on assumption bases and not on facts. 3. That the Ld. CIT (Appeal) has wrongly estimated the income of the appellant @ 3% whereas the appellant has submitted the following facts before the Hon'ble CIT (A) :-. i) That when it has been accepted that the appellant is a entry provider and not making actual sales/purchase and earns nominal income by way of commission on issuing bills to parties @ 0.29% to 0.50%. ii) That the in the next year i.e. A Y 2014-15, the same Assessing Officer in the case of the appellant has assessed the income of the appellant @ 0.5%. A copy of the assessment order for the A Y had been provided to the Ld CIT (A). i....

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....M/s. Anil Trading Co. Bank Account which shows that the assessee is an entry operator. Assessee also alleged to have purchased goods from 21 firms whose addresses were either found to be not existing or they have refused to accept the service of notice u/s 131 of the Act. AO proceeded to conclude that assessee has never supplied any items and issued bills to give benefits to certain firms to inflate their expenses nor the assessee has furnished complete books of account along with vouchers and consequently, AO invoked the provisions contained u/s 145 of the Act and thereby rejected the books of account. AO observed that considering the trade practice in case of entry operators, assessee must have charged 10% of these entries and thereby ass....

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....the income of the assessee by applying 3% rate as against 10% applied by the AO which comes to Rs. 28,86,745/- by returning following findings :- "3.3 Findings:- A perusal of the facts of the case reveal that even before the undersigned, the appellant has agreed to the fact that he provided accommodation entries to dealers in order to help reduce their tax liabilities. The Assessing Officer has clearly mentioned that complete books of accounts vouchers etc were not produced and, hence, the books were righty rejected and an estimate made of the income earned out of the entries provided. The Assessing Officer has pegged the income @ 10% of Rs. 10,77,60,505/- (the figure shown as the appellant's turnover). However, the ra....