2026 (6) TMI 861

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.... aggrieved on the addition of Rs. 35,12,804/- on account of excess profit determined by the A.O after rejecting books of account and secondly, by action of the A.O on further disallowance of Rs. 1 lakh on account of expenses as per profit & loss account. 3. The relevant facts are that the assessee is engaged in the liquor business as per liquor license for sale of foreign liquor and country liquor at Tilda. That during the assessment proceedings, various statutory notices were issued to the assessee asking the assessee to explain the genuineness of the sales recorded as per profit and loss account at Rs. 233260689/- and showing gross profit of Rs. 59,55,196/- @2.55% and net profit of Rs. 13,06,961/- @ 0.56%. In reply, the assessee had fi....

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....t no sale bills are issued and sales are accounted for on cash basis. The books of account are not actually/not produced for verification. 3.2 In trading account sales of Rs. 233260689/- has been shown. As stated in the reply the assessee has not maintained sale bills. The assessee has not filed the copy of register or other relevant documents regarding the sales which were asked the assessee to file for the month of April 2015, September 2015 and March 2016. The assessee has also not maintained the quantitative details of his liquor business. On such circumstances the assessee owned liberty to account for the amount of sales at his own convenience. On this point I hold that the account of the assessee did not reflect the actual fi....

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....is added to the total income of the assessee on account of trading result. Penalty proceeding u/s. 271(1)(c) is initiated for concealment of income." 4. The Ld. CIT(Appeals)/NFAC had upheld the findings of the A.O rejecting the books of account u/s. 145(3) of the Act and at the same time, upholding the GP rate as held by the A.O @ 4%. 5. Being further aggrieved, the assessee had preferred this appeal. The Bench had directed the Ld. Counsel for the assessee to submit comparative GP rate in similar line of business and that in the assessments what is the GP percentage accepted by the Department. In this regard, the Ld. Counsel for the assessee had furnished the assessment order for A.Y.2016-17 in the case of Mr. Gaurav Kumar Singh who i....