Dy. CIT v. GRG Oil Mill - Taxpublishers.in

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The Tax Publishers2020 TaxPub(DT) 1207 (Jod-Trib) : (2020) 203 TTJ 0609

INCOME TAX ACT, 1961

Section 68

It was not in dispute that assessee maintained proper books of account which were subject to audit under section 44AB and AO had not pointed out any specific defect in said books ofa cocunt. Also, AO had never disputed purchases, stock statements, yields, VAT returns and even GP rate declared was found to be genuine and when impugned sales was already included by assessee in its turnover on which GP rate of 8.8 per cent was earned, there was no justification for making addition as regards the same sales which was already part of the turnover accepted by department had not provided opportunity asked for cross-examination of Trilok goel on the basis of whose statement impugned sales was treated as bogus.

Income from undisclosed sources - Addition under section 68 - Sales declared by assessee treated as bogus based on statement recorded by investigation wing - AO not having disputed purchases, VAT returns and GP rate declared by assessee

AO based on statement recorded by investigation wing in case of certain entry operators, treated sales declared by assessee as unexplained credit under section 68 and made addition.Held: It was not in dispute that assessee maintained proper books of accounts which were subject to audit under section 44AB and AO had not pointed out any specific defect in said books of account. Also, AO had never disputed purchases, stock statements, yields, VAT returns and even GP rate declared was found to be genuine and when impugned sales was already included by assessee in its turnover on which GP rate of 8.8 per cent was earned, there was no justification for making addition as regards the same sales which was already part of the turnover accepted by department had not provided opportunity asked for cross-examination of Trilok Goel on the basis of whose statement impugned sales was treated as bogus.

Relied:CIT v. Odeon Builders (P) Ltd. in Civil Appeal Nos. 9604 & 9605 of 2018, Order, dated 21-8-2019 (2019) 311 CTR (SC) 258 : 2019 TaxPub(DT) 6298 (SC)--Ed.).

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2012-13

IN THE ITAT, JODHPUR BENCH