If books of account filed by the assessee not proper AO can reject that and in case of trading in broken rice government also accept levy after allowing 25% on broken rice


Court :
INCOME TAX APPELLATE TRIBUNAL

Brief :
Assessee filed original return of income on 1.11.2004 declaring an income of Rs.92,076/-. The case was processed u/s 143(1) and later on case was selected for scrutiny. In response to notice u/s 143(2) and 142(1), the assessee’s representative appeared before the Assessing Officer along with the brother of the assessee attended the hearing from time to time, filed written submissions and case was discussed with him.The assessee received income from trading of rice, excel sim prepaid and paddy. During the year under consideration, the assessee has shown purchases of the above items at Rs.5.29 crores and sales of Rs.4.73 crores. The books of account were produced which were put to test check indicate that the assessee has shown combined g.p. of 1.18% on account of trading of excel sim recharge coupon, paddy and rice. However, on drawing trading account of rice separately, it was found that there is a loss of Rs.1,82,955.08 on trading of rice. It is noted by the Assessing Officer that the assessee has not shown any loss in the trading account, but further discounts have been allowed to the customers on sale. In this manner, resultant loss in the trading of rice is much more than indicated in the above drawn trading account. During the course of assessment proceedings, assessee was asked to produce closing stock and valuation thereof. In response, the assessee filed inventory of closing stock along with copies of purchase bills of rice

Citation :
Rajesh Agarwal, Prop. M/s Hardwarimal Ram Avtar, AGM-4, Galla Mandi, Rudrapur,Distt. Udham Singh Nagar,Rudrapur.(PAN/GIR No.ABIPA1762A)(Appellant)Vs. ITO, Distt. Udham Singh Nagar,Rudrapur (Respondent)

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Ayush
Published in Income Tax
Views : 2160

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