2022 (9) TMI 985

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....The present Income Tax Appeal has been filed seeking a direction for setting aside the order dated 1st October, 2021, passed by the Income Tax Appellate Tribunal ('ITAT') in ITA No. 7376/Del/2017 for the Assessment Year ('AY') 2013-14. 2. The appellant is aggrieved by the order of the ITAT upholding the decision of the Commissioner of Income Tax (Appeals) ['CIT(A)'] and the Assessing Officer ('AO') rejecting the books of accounts of the Assessee and assessing the gross profit of the Assessee for the relevant assessment year at the rate of 2% of the gross sales. 3. The learned counsel for the appellant contends that the ITAT failed to appreciate that the AO had failed to take into account the component of Central Sales Tax ('CST') while de....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....e heard the learned counsel for the parties and perused the paper book. The order records that the case was selected for scrutiny through Computer Aided Scrutiny Selection (CASS) with reasons of low net profit from large gross receipts. On 7th September, 2013, the Assessee filed his return declaring a total income of Rs. 6,27,480/- and in his balance sheet disclosed purchases of Rs. 80,30,04,497/-, sales amounting to Rs. 77,01,13,308/- and a gross profit of Rs. 9,88,679/- i.e., 0.13% of the purchases. The AO noted that the total expenses were a meagre sum of Rs. 3,57,159/-. The AO noted that the expenses claimed for making such huge sales and purchases were nominal. The AO during the course of the assessment proceedings issued notice to the....