Paramount Impex Vs ACIT (ITAT Chandigarh)

IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH “B”, CHANDIGARH
BEFORE: Sh. SANJAY GARG, Judicial Member & SMT. ANNAPURNA GUPTA, Accountant Member
 
ITA NO. 1097/Chd/2016
Assessment Year : 2013-14

M/s Paramount Impex,
D-202-203, Phase VI
Focal Point, Ludhiana
PAN NO: AAEEP3160G
Appellant

Vs

The ACIT, Circle-1
Ludhiana
Respondent

Assessee by : Shri Gaurav Sharma, CA
Revenue by : Shri Rajesh Dhaneshta, ACIT

Date of Hearing : 05/03/2020
Date of Pronouncement : 30/06/2020

Order

PER ANNAPURNA GUPTA, Accountant Member:

The present appeal has been filed by the assessee against the order passed by the Ld. Commissioner of Income Tax (Appeals)-I, Ludhiana(hereinafter referred to as “CIT(A)] u/s 250(6) of the Income Tax Act,1961(in short referred to as “Act”) dt.30-08-2015 relating to assessment year(A.Y)2013-14)

2. The Present appeal has been fixed for hearing in consequence to the order passed in a Misc. Application filed by the assessee Dt.12-11-18 , recalling the exparte order originally passed by the ITAT in the said case dt. 20.06.2018

3. The issue involved in the present appeal relates to the rejection of books of account of the assessee u/s 145(3) of the Act and estimation of gross profit earned.

4. Drawing our attention to the facts of the case, it was pointed out that the Assessing Officer( A.O.) on noticing that the assessee did not maintain any stock register and on noting defect in the method of valuation of stock adopted by the assessee, had resorted to rejection of books of accounts maintained by the assessee under section 145(3) of the Act and had thereafter proceeded to apply the Gross Profit Rate(GPR) of 18% to the turnover of the assessee for estimating the profit earned during the year .That the matter was carried in the appeal before the Ld. CIT(A) who upheld the rejection of books of account but at the same time reduced the estimation of GPR from 18% to 16%.

5. Aggrieved by the same the assessee has came up in appeal before us challenging both the act of rejection of books as well as estimation of gross profit raising the following effective grounds:

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