Case Law Details
The brief facts are that the assessee company is engaged in the manufacturing of plastic moulded components of plastic good. It declared Nil income in its return, which was not accepted by the AO, by rejecting the books of account, which was upheld by the CIT(A) and as such this appeal before us.
It is noticed that during the assessment proceeding, the books of account was produced before the AO, which were rejected by the AO on the following basis :-
(a) Cash vouchers above Rs. 5,000/- were not bearing revenue stamps and the assessee had made many cash payments above Rs.20,000/-. The AO specifically stated that on 14.09.2007, the assessee has shown cash payment of Rs. 1,74,500/- in cash book which the AR stated, was an amount paid in the court. On going through the vouchers produced, it was observed that the payment was actually made on 12.09.2007 while the entry in the cash book was made on 14.09.2007.
(b) Similarly, the AO pointed out that the assessee made a payment of Rs.5,49,237/- in cash to M/s Superwell Services on 07.04.2007 for providing labour. In other instances, cash payment to Shri Lee Geua yeop on 07.04.2007 were also made on dates which did not tally with the books of accounts and no vouchers in support of these cash payments were available.
(c) The AO has pointed out that the assessee company submitted that it does not maintain any payment voucher except salary sheet.
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