Case Law Details
Blue Stampings & Forgings Ltd Vs DCIT (ITAT Delhi)
ITAT held that Assessing Officer is not justified in taking drastic action of rejection of books of account which are audited and are without any qualification solely on the basis of general remarks that photocopy of the bills have been produced instead of original bills. No specific instance has been provided in the order to appreciate as to how such delinquency on the part of the assessee has resulted in unreliability of books per se. Admittedly, the photocopies of bills and vouchers were duly produced, the Assessing Officer has not made any independent inquiry on the correctness of the bills from third parties. The profits declared in the instant case being in the vicinity of the profits declared in the earlier years, we see no apparent justification whatsoever in the action of the Revenue.
The insignificant variation in net profit ratio per se cannot in our opinion lead to drastic action of rejection of audited books without anything more. We find traction in the plea of the assessee that no justifiable reasons are available to reject the books and embark upon estimations. We thus set aside the action of the CIT(A) and direct the Assessing Officer to restore the position taken by the assessee in this regard.
FULL TEXT OF THE ORDER OF ITAT DELHI
The captioned appeal has been filed by the Assessee seeking to assail additions of Rs.33,11,185/- confirmed by the CIT(A) on account of fall in net profits.
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