TaxTMI 
TaxTMI 
2025 (2) TMI 1684
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....he Assessee by filing its return of income on dated 28.09.2013 had declared its total income at Rs. 12,55,430/-, which was processed u/s 143(1) of the Act. Subsequently, the case of the Assessee was selected for scrutiny. The Assessing Officer (AO) on perusing the record found that the Assessee Company during the AY under consideration has made the sales of Rs. 40,08,60,057/- and purchases of Rs. 39,79,99,926/-, and therefore asked the Assessee to furnish the details of sales & purchases and the expenses of Rs. 23,59,656/-. The Assessee filed the relevant details which read as under: SR. No, Name & Address of Party Description of Items Sold Amount (Rs. ) Sales made in Globe Agro Division of M/s Nouveau Global Ventur....
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..... 3.1 In compliance to the commission issued u/s 133(1)(d) of the Act, ITO (Investigation), Rajkot submitted as under: "ITO, Investigation Rajkot submitted that M/s Shiv Krishna Industries does not exist at the given address and in spite of the best effort of Inspector the said concerne could not be located and in case of M/s Champian Agro Limited, summon was issued by ITO Investigation Rajkot on 17.03.2016 and served on assessee company but none attended in compliance. Again Inspector of his office was deputed to collect the requisite details/documents / information but nothing was made available to the Inspector by the Joint MD of the company Shri Jitendra Patel. In his report, he has further submitted purchases/sales transact....
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.... the Assessee. 5. The Assessee, being aggrieved, challenged the said addition before the Ld. Commissioner and filed the following documents as filed before the AO: "i. Party wise details of purchases & sales, ii. Confirmation of the parties disclosing inter-alia their PAN & address and that the payments were made/received by/through banking channels, iii. Copy of purchase & sale bills which inter-alia disclose party's VAT/CST registration details, iv. Copy of delivery challans duly acknowledged by parties, v. Copy of sales-tax return filed by the appellant, and vi. Appellant's books of a of account & the bank statements". 5.1 The Assessee before the Ld. Commissioner also cl....
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.... by observing and holding as under: 7. The Assessee, being aggrieved, is in appeal before this Court. 8. Having heard the parties and perused the material available on record, it is observed that from the documents available on record, that identical addition was also made by the Revenue in the Assessee's cases pertaining to A.Y. 2014-15 & 2015-16, which travelled up to the Tribunal, who vide order dated 24.07.2023 in ITA no.5778/M/2019 (AY 2014-15) and ITA no.866/M/2020 (AY 2015-16) dealt with the said identical addition and ultimately deleted the same by observing and holding as under: "12. Ground No. 3 with its sub-grounds pertains to rejection of books of accounts applying provisions of section 145(3) of the Act. We have ....
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....,455/- during the year under assessment Since the assessee has furnished inaccurate particulars and concealed its income, penalty u/s. 271(1)(c) is hereby initiated for the same. 13. With reference to the above findings of AO in the assessment order, it is clearly established that AO was not able to make out the case as required to apply the provisions of section 145(3) of the Act. The findings of AO are cursory in nature may be relevant for other purposes, but to apply section 145, a detail reasoning with specific defects pointed out during the assessment proceedings has to be mentioned and then only provisions of section 145(3) can be applied and the same are missing in the present case. 14. In his order, Ld. CIT (A) con....
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....as being claimed by it. In view of such a factual position, the contention of the assessee of rejection of its books and estimation of its income in the assessment order on a ground which was different from the one mentioned in the show cause notice, is found to be erroneous and is therefore, rejected. Accordingly, all the additional grounds of appeal raised by the assessee are dismissed. 15. The findings of the authorities below mentioned (supra) to justify rejection of books of accounts u/s. 145(3) clearly reflects that whatever may be the show cause issued or enquiry conducted leads to specific additions /disallowance u/s 37/69C, etc. Legal position with reference to rejection of books of accounts is altogether different whereas....