Case Law Details
Entire Industries Vs ITO (ITAT Ahmedabad)
It is pertinent to note that the disallowance by the Assessing Officer is presumptive basis as the books were not rejected. Merely stating that bills were not produced was incorrect fact. In fact, the assessee through its bills has established that there is a co-relation between the sales and the purchase and merely not producing original bills cannot make the purchase bogus. The seized material by the Excise Department was also confined to the said purchase and therefore, the estimated purchases done by the Assessing Officer is not justifiable. At no point of time books were rejected and hence the genuinity of the purchase and the details given by the Assessing Officer at the assessment proceedings were justifiable. Hence, appeal of the assessee is allowed.
FULL TEXT OF THE ORDER OF ITAT AHMEDABAD
2. The grounds of appeal raised by the assessee are as under:
” 1. The ld. CIT(A) has erred in confirming the adhoc and estimated addition of Rs 11,31,522/- being 5% of total purchases of Rs.2,26,30,434/- made by the AO on the ground that the original bills are not produced and in view of late disclosure of the fact of search operation carried out by the Central Excise Department in case of the appellant. In view of facts of the case and evidences available and furnished in support thereof, the impugned adhoc and estimated addition of Rs.11,31,522/- requires to be deleted.
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