TaxTMI 
TaxTMI 
TaxTMI 
2022 (9) TMI 711
X X X X Extracts X X X X
X X X X Extracts X X X X
....t Rs.4,46,210/-. The case was selected for scrutiny assessment. The A.O. issued notice and questionnaire under sections 143(2) and 142(1) of the I.T. Act, 1961 and served on the assessee by speed post. Thereafter, the A.O. provided several opportunities to the assessee for production of requisite documentary evidences vide notices issued under section 142(1) of the I.T. Act, 1961. AO noted that assessee did not file the details called for by him. Since the assessee neither appeared nor filed a single detail before the A.O. the A.O. computed the total income of the assessee at Rs.4,79,03,090/- by making various additions namely on account of G.P. rate and expenses and addition on account of sundry creditors and other account against the decl....
X X X X Extracts X X X X
X X X X Extracts X X X X
....the principles of natural justice and hence unsustainable in law. 3. That the learned Commissioner of Income Tax (Appeals) has grossly erred in failing to appreciate that none of the notices issued were served on the appellant as appellant had closed its business and the premises from where it was carrying on its business was a rented premises and after the closure of the business, it had vacated the premises. 4. That the learned Commissioner of Income Tax (Appeals) has grossly erred in upholding the rejection of the books of account and enhancement of the GP rate, whereby an addition of Rs.16,48,075/- was made. 5. That the learned Commissioner of Income Tax (Appeals) has grossly erred in upholding the addition of Rs.4,50,000/- on acc....
X X X X Extracts X X X X
X X X X Extracts X X X X
....d at Yusuf Sarai failing to appreciate that aforesaid addition was unsustainable on the facts and circumstances of the instant case. The above grounds of appeals are independent of, and without prejudice to each other. That the appellant craves leave to add, alter, amend or withdraw all or any grounds herein or add any further grounds as may be considered necessary either before or during the hearing of these grounds." 4. The case file reveals that the Registry issued defect notice to assessee for compliance duly intimating that appeal fees is short by Rs.10,000/-, Tribunal Fee Challan not filed, Grounds of appeal before Ld. CIT(A) not filed. However, there were no compliance from the side of the assessee. The case file reveals that si....
X X X X Extracts X X X X
X X X X Extracts X X X X
....d not produce any evidence or books of accounts. He therefore concluded the purchase and sales to be not verifiable. He thereafter held the G.P. of 3.47% shown by the assessee to be too low and held the G.P. at 5% to be appropriate. He accordingly made addition on account of G.P. at Rs.8,75,486/- (being the G.P. calculated @5%). 6. AO also noted that assessee has claimed expenses of Rs.7,72,589/-. In the absence of books of accounts and bills/vouchers, AO disallowed expenses amounting to Rs.7,72,589/-. AO for the reasons stated in the order made additions on various other counts. 7. Aggrieved by the order of AO, assessee carried the matter before CIT(A) who upheld the order of AO. Aggrieved by the order of CIT(A), assessee is now in appea....