Case Law Details
ACIT Vs Rakesh Global Steel P. Ltd. (ITAT Delhi)
It is seen from the material on record that the assessee has been consistently following the trading pattern and its trading results have been accepted by the A.O in prior and subsequent periods. Mere non availability of stock register cannot be sufficient to reject trading results when the audited final accounts and other sources including the VAT data are available to cross verify the trading results including the sales verification. It is not the case of the Revenue that the A.O has not doubted the bonafide of the purchases or sale, nor there is an allegation of any manipulation in purchases or sales. Further, the Ld. A.O has also accepted the turnover declared by the assessee and also accepted the books of accounts by not pointing out any specific defect therein. Therefore, in our opinion, rejection of trading results in isolation is not proper and the same is erroneous. Further, it is not in dispute that an assessment order was made u/s 143(3) of the Act for the Assessment Year 2012-13 and 2015-16 wherein the declared results were accepted, the facts of those Assessment Years are similar that of the year under consideration. It is further seen that the gross loss during the Assessment Year 2015-16 is 11.32% against the gross loss of 0.41% during the year under consideration which indicates significant increase. Therefore, the action of the A.O in rejecting the trading result is not found to be tenable.
FULL TEXT OF THE ORDER OF ITAT DELHI
This appeal is filed by the assessee against the order dated 25/04/2018 passed by CIT(A)-XXV, New Delhi for Assessment Year 2014-15.
2. Brief facts of the case are that, the assessee company filed return of income declaring loss of Rs. 3,47,94,641/-, the same was selected for scrutiny and statutory notices were issued, assessment proceedings have been initiated against the assessee. The assessee’s representative has participated in the assessment proceedings. The assessment order came to be passed on 29/12/2016 against the assessee, wherein it is held that, the loss reported by the assessee cannot be verified and the trading result shall be rejected u/s 145 of the Income Tax Act.
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