TaxTMI 
TaxTMI 
2025 (7) TMI 177
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....ionnaire were issued and served on the assessee. In response, assessee submitted the relevant information, bank statement, bills and other vouchers on test check basis and filed relevant information as called for. 3. During assessment proceedings, the AO observed that assessee has declared Rs. 20.68 crores on which gross profit has been shown at Rs. 12,49,238/- which is 0.60% of sales. Similarly, net profit has been shown at Rs. 9,39,215/- which is 0.45%. Assessee was asked to justify the above G.P. and net profit. In response, assessee submitted that the business of the assessee is trading of live stock. Further the AO observed that assessee could not submit any supporting details on comparative basis. On examination of the books of account and details of vouchers, he observed that there is no purchase bill in the record. The gross profit and net profit shown by the assessee are very nominal in view of the turnover of the assessee and no satisfactory explanation in this regard has been submitted by the assessee. Accordingly, he observed that the book results declared by the assessee are not reliable and cannot be accepted and accordingly, he rejected the books of account u/s 14....
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....ore, such unverifiable claim cannot be accepted. Further submission of the AR that purchase bills have not been maintained as the purchases have been made from farmers/villagers does not have any justification for not maintaining the same. After considering the peculiar facts of the case, material on record, comparable cases and turnover of the appellant, it would fair and reasonable to estimate the gross profit in this case @ 3.5% as against 0.6% shown by the appellant. Accordingly the gross profit on this account works out to Rs. 72,40,238/- as against Rs. 12,49,238/- declared by the appellant which results into addition of Rs. 59,91,000/- as against Rs. 8,19,401/-. Thus income of the appellant is enhanced by Rs. 51,71,599/- u/s 251(1) of the LT. Act. The AO is directed to recompute the total income chargeable to tax, in the light of the above discussion and conclusion and accordingly issue revised notice of demand u/s 156 of the Act. Grounds of appeal Nos.1 to 10 are dismissed." 5. Aggrieved assessee is in appeal before us raising following grounds of appeal:- "1. That assessment order passed 143(3) and the addition made are illegal, bad in law and without jurisdicti....
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.... the assessee, which are comparable to the assessee's case, which is unjustified and purely based on surmises and conjectures. 8. That, The CIT(A) erred in making the enhancement to the income of the assessee appellant without confronting the actual facts and circumstances of the comparable applied by the CIT (A), which shows, that, CIT (A) has not given the proper opportunity to the assessee appellant, which is illegal, bad in law and against the Principle of Natural Justice. 9. The additions confirmed and the observations made by CIT (A) are unjust, unlawful and based on mere surmises and conjunctures. The additions made cannot be justified by any material on record. 10. That the explanation given evidence produced, material placed and available on record has not been properly considered and judicially interpreted and the same do not justify the additions/ allowances made. 11. That the impugned Assessment Order passed by the Assessing Officer and order passed by CIT(A) are against the principles of natural justice and the same has been passed without affording reasonable and adequate opportunity of being heard. 12. That the interes....
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.... the current assessment year. Accordingly, grounds raised by the assessee in AY 2013-14 are allowed. 9. In the result, the appeal filed by the assessee for AY 2013-14 is allowed. 10. The assessee and Revenue has raised the following grounds of appeal for AY 2014-15 :- ASSESSEE'S APPEAL 1. That assessment order passed 143(3) and the addition made are illegal, bad in law and without jurisdiction. The CIT(A) erred in upholding the same. 2. That, the assessing officer has erred in computing the total income at Rs. 6,33,69,989.00 by estimating the Net Profit @8% of the total turnover as against declared income of Rs. 11,03,680.00. The CIT(A) erred in also sustaining the income at Rs. 1,85,05,470.00 on adhoc estimated basis @3% of total turnover, which is are illegal, unjust, highly excessive and are not based on any material on record. 3. That, the CIT (A) has erred in rejecting the books of accounts without any basis and purposed, the estimation of Net Profit @2.75%, whereas the CIT (A) has sustained the addition an estimation the addition @3%, which is illegal bad in law and without jurisdiction and against the principle of natural justice. ....
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....l and based on mere surmises and conjunctures. The additions made cannot be justified by any material on record. 11. That the explanation given evidence produced, material placed and available on record has not been properly considered and judicially interpreted and the same do not justify the additions/ allowances made. 12. That the impugned Assessment Order passed by the Assessing Officer and order passed by CIT(A) are against the principles of natural justice and the same has been passed without affording reasonable and adequate opportunity of being heard. 13. That the interest u/s 234A & 234B has been wrongly and illegally charged as the appellant could not have foreseen the disallowances/additions made and could not have included the. same in current income for payment of Advance tax. The interest charged under various sections is also wrongly worked out. REVENUE'S APPEAL 1. The CIT(A) has erred in law and on facts in taking the G.P. @ 3% as against taken @ 8% by the A.O. as the assessee has not properly maintained books of his proprietorship firm and no details of sale & purchase of live stock alongwith bills & vouchers for evidenc....
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....ces, accordingly he sustained the addition of Rs. 31,21,400/- and further the same was confirmed by him u/s 69A of the Act. 15. Aggrieved both assessee and Revenue are in appeal before us. 16. At the time of hearing, ld. AR submitted as under :- "c) Reg. the addition of Rs. 31,21,400.00 on account of Unexplained Cash Credit applying provision of section 68:- That, during the year, the assessee has made an addition of Rs. 49,00,000.00 toward his capital. During the assessment proceedings and appellate proceedings, the assessee has explained, that, the assessee has himself contributed Rs. 11,00,000.00 from his saving account and Rs. 8,00,000.00 has been received from her mother Smt. Shimla Devi and filed the copy of bank statement. The assessee has also explained, that, the said fund; his out of the maturity of the LIC Policy, the details are as under :- Date Particulars Amount Closing balance 10.01.2014 B/f balance 3,29,753.30 16.01.2014 Amount received form LIC 2,39,000.00 5,68,753.30 16.01.2014 Amount received form LIC 19.500.00 5,88,253.30 16.01.2014 Amount received form LIC 40,000.00 6,28,253.30 ....