2024 (5) TMI 232

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....e Tribunal, Varanasi Bench, Varanasi dated 16.11.2023 in Income Tax Appeal No. 217/ALLD/2017 for A.Y. 2014-15. By that order, the Tribunal has dismissed the appeal filed by the revenue and confirmed the order of the CIT (Appeals) dated 03.05.2017. 3. The appeal has been pressed on the following questions of law : "1. Whether the Tribunal has failed to appreciate that the A.O. after considering the entirety of the case had applied the average gross profit rate of the last 3 assessment years to determine the gross profit of the assessee at Rs. 11,65,08,583/- as against the disclosed gross profit of Rs. 8,00,48,015/- shown by the assessee thus making an addition of undisclosed profit of Rs. 3,64,60,658/- in the hands of the assesse....

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.... to Rs. 25,29,905/-. Those being in contravention of Section 40-A(3) of the Act, besides disallowance of expenditure claimed, the Assessing Officer found that the books of account of the assessee were not reliable. Also, the Assessing Officer had recorded a finding to disallow expenditure Rs. 7,20,834/- being 10% of the expenditure incurred on consignment sale claimed by the assessee, on ad hoc basis. According to the Assessing Officer both heads of expenditures were not duly vouched in the books of accounts of the assessee. Hench, the books were not reliable. 5. Other than the above, there no finding was recorded by the Assessing Officer to doubt the credibility or correctness or completeness of the books of accounts of the assessee. Ye....

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.... in nature. It has observed, though there is recital in the assessment order, no addition was made in the final computation on income of the assessee. In absence of rectification proceeding undertaken by the Assessing Officer at the relevant time, the assessment order had attained finality to that extent. Hench no disputed expenditure existed. 8. We find no error on part of the Tribunal in recording either of the above findings. Once the CIT (Appeals) looked into the vouchers of cash expenses and recorded a clear finding that those were duly vouched except for two expenditures, in absence of any material shown to establish that that finding was perverse, there survives no room to interfere with the confirmation of such finding by the Tri....