ACIT Vs Balajee Structural (India) Pvt.Ltd. (ITAT Raipur)
It is not in dispute that the appellant has maintained books of account regularly and these are duly audited u/s 44AB of the I.T. Act and the quantitative details were prepared and were duly audited. The variation in percentage of GP/NP or payments in cash, in the absence any cogent reasons could not, by itself, have been a ground to hold that proper income of the appellant cannot be deduced from the accounts maintained by it and consequently, could not have been a ground to reject the accounts invoking section 145(3) of the Act. There is no finding in the assessment order of the A.O that the actual cost of finished goods purchased by the appellant was less than what was declared in the account books. There is no finding by the A.O that actual quantity of finished goods sold by the appellant was more than what it was shown in the accounts books. There is no finding by the A.O that the finished goods were sold by the appellant at a price higher than what was declared in the account books. From the Tax Audit Report, it is discernible that the appellant did maintain stock records and the A.O has not pointed out any incorrectness in the same, I am of the considered opinion that merely because the quantity of raw material consumed and finished goods produced have been quantified with some degree of estimation the books of account cannot be said to be unreliable or prone to rejection.
