M/S FLORALS INDIA, Jaipur V. ADD. CIT, Jaipur

ITA 168/JPR/2012

• Counselvise Citation: 16823114 RSA 2012
• Duration Of Justice: 1 year(s) 11 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-01-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2008-2009
• Appeal Filed On: 23-02-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: D C SHARMA
• Assessee Lawyers: DINESH KUMAR GOYAL
• Keywords: Business income
• Section: 131

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL JAIPUR BENCH, JAIPUR (BEFORE SHRI HARI OM MARATHA AND SHRI N.K. SAI NI) ITA NO. 168/JP/2012 ASSESSMENT YEAR : 2008-09 PAN: AAAFF 1950 C M/S. FLORALS INDIA VA. THE ADDL. CIT E-11, RAM PATH, RANGE-2 SHYAM NAGAR, JAIPUR JAIPUR (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI DINESH KUMAR GOYAL DEPARTMENT BY: SHRI D.C. SHARMA DATE OF HEARING: 21-01-2014 DATE OF PRONOUNCEMENT: 31 -01-2014 ORDER PER HARI OM MARATHA, JM:- THIS APPEAL OF THE ASSESSEE PERTAINING TO ASSESS MENT YEAR 2008-09 IS DIRECTED AGAINST THE ORDER OF THE LD. CIT(A)-I, JA IPUR DATED 09-01-2012 WHEREIN THE ASSESSEE HAS RAISED SOLITARY GROUND AS UNDER:- THE LD. CIT(A) ERRED IN SUSTAINING TRADING ADDITI ON OF RS. 78,80,818/- MADE ON ACCOUNT OF PURCHASE FROM R AMESH CHAND CHHAJER AND SMT. TARA DEVI CHHAJER HELD AS BO GUS PURCHASE. 2.1 BRIEFLY STATED, THE FACTS OF THE CASE ARE THAT THE ASSESSEE FIRM IS ENGAGED IN THE BUSINESS OF MANUFACTURING OF CURTAIN S, PILLOW COVERS, QUILTS 2 ETC. DURING THE ASSESSMENT YEAR UNDER CONSIDERATION , THE ASSESSEE HAS SHOWN THE GROSS PROFIT RATE OF 29.34% ON SALES OF RS. 8, 81,61,928/- AS AGAINST GROSS PROFIT RATE OF 29.72% ON TURNOVER OF RS. 6,39,94,6 29/- IN THE IMMEDIATELY PRECEDING YEAR. THE AO EXAMINED THE BOOKS OF ACCOUN T OF THE ASSESSEE WHICH ARE AUDITED. THE ASSESSEE IS 100% EXPORTER OF EMBROIDERED CLOTH, CURTAIN AND MADE-UPS WITHOUT ANY OUTLET FOR LOCAL S ALES. DURING THE COURSE OF ASSESSMENT PROCEEDINGS, THE DETAILS OF PURCHASES AN D SUNDRY DEBTORS WERE CALLED FOR EXAMINATIONS. TWO OF THE SUPPLIERS NAMEL Y SHRI RAMESH CHAND CHHAJER AND SMT. TARA DEVI CHHAJER, APPEARING IN TH E LIST OF SUNDRY DEBTORS SHOWED OUTSTANDING BALANCE OF RS.29,37,211/-AND RS. 33,43,777/- RESPECTIVELY. BOTH THE PARTIES USED TO SUPPLY THE G OODS TO ASSESSEE FIRM THROUGHOUT THE YEAR BUT NOMINAL PAYMENTS WERE MADE TO THEM. FROM THIS FACT, THE AO GOT DOUBTFUL AND SUSPICION AROUSED WHE THER THE SUPPLIES MADE BY THEM ARE GENUINE OR BOGUS. ACCORDINGLY, THE AO I SSUED SUMMONS U/S 131 OF THE I.T. ACT, 1961 (THE ACT FOR SHORT) TO BOTH OF THEM. BOTH OF THEM HAD APPEARED WITH DESIRED DOCUMENTS IN THE OFFICE OF TH E AO. THE AO NOTICED THAT SALE BILLS BOTH THE PARTIES DID NOT CONTAIN AN Y TIN / CST NO. OR OTHER DETAILS OF REGISTRATION WITH THE SALES TAX DEPARTME NT. THE STATEMENTS ON OATH OF BOTH THESE PARTIES WERE RECORDED. THEY STAT ED THAT NO SUCH SUPPLIES WERE MADE BY THEM AND THE BILLS ARE FAKE. ACCORDIN GLY, THE AO SHOW 3 CAUSED THE ASSESSEE VIDE LETTER DATED 22-11-2010 AL ONGWITH THE COPIES OF THESE DOCUMENTS INCLUDING STATEMENT AND PROPOSED TO TREAT THESE PURCHASES AS BOGUS. THE ASSESSEE REPLIED VIDE LETTER DATED 2- 12-2010 AS UNDER:- THE PURCHASES MADE FROM RAMESH CHAND CHHAJER AND TARA DEVI CHHAJER CANNOT BE CONSIDERED AS BOGUS AS:- (A) GOODS HAVE BEEN PURCHASED FROM THESE PARTIES AFTER OBTAINING BILLS WHICH HAS BEEN EXPORT ED ABROAD AND WITHOUT GOODS IT IS NOT POSSIBLE TO MAKE EXPORT OF THOSE GOODS. (B) BOOKS OF ACCOUNT ARE AUDITED, VOUCHED AND VERIFIABLE AND NO DEFECT HAS BEEN FOUND IN SALE, PU RCHASE, OPENING STOCK AND CLOSING STOCK . GROSS PROFIT OF THE YEAR IS 29.34% WHILE IT WAS IN THE LAST YEAR 29.72%. THERE IS NEGLIGIBLE DO WNFALL DUE TO NON-PROPORTIONATE INCREASE IN COST OF RAW MA TERIALS AS COMPARED TO SALE PRICE OF FINISHED GOODS . (D) WE ARE SUBMITTING HEREWITH FOLLOWING IN SUPPORT OF OUR PURCHASES:- (I) CONFIRMATION OF ACCOUNT OF RAMESH CHAND CHHAJER AND . TARA DEVI CHHAJER WITH COMPLETE ADDRESS, PAN FOR THE YEAR UNDER CONSIDERATION. (II) COPY OF INCOME TAX RETURN OF RAMESH CHAND CHHAJER TARA DEVI CHHAJER (E) THESE PARTIES MIGHT HAVE MADE STATEMENTS TO SAVE THEIR INTEREST BEST KNOWN TO THEM AND THESE AR E NOT APPLICABLE TO US. 4 IN THESE CIRCUMSTANCES PURCHASES MADE FROM THESE PARTIES CANNOT BE CONSIDERED AS BOGUS. AFTER CONSIDERING THE ABOVE REPLY, THE AO FOUND THA T THESE PURCHASES ARE BOGUS WITH REFERENCE FINANCIAL STATUS OF THESE PAR TIES AND WITH REFERENCE TO SAMPLE BILLS AND THEIR STATEMENTS, HAS FOUND THAT T HE PURCHASES TO THE TUNE OF RS. 78,80,818/- ARE INFLATED WITHOUT BRINGING ANY M ATERIAL IN THE BUSINESS AND THEREFORE, HAS ADDED THIS AMOUNT TO THE TOTAL I NCOME OF THE ASSESSEE FOR THE YEAR UNDER CONSIDERATION. 2.2 AGGRIEVED, THE ASSESSEE WENT IN APPEAL BEFORE T HE LD. CIT(A) WHO HAS ALSO FOLLOWED SUIT AND HAS CONFIRMED THIS ADDITION. 2.3 BEFORE US, BOTH THE PARTIES HAVE REITERATED THE IR EARLIER STANDS. IN SUMS AND SUBSTANCE, THE SUBMISSION OF THE LD. AR IS ENUM ERATED AS UNDER:- I) THE ASSESSEE HAD MADE COMPLETE QUANTITATIVE TA LLY OF PURCHASE OF RAW MATERIAL, ISSUED TO PRODUCTION A ND MANUFACTURING AND EXPORT BY THE APPELLANT. II) THE A.O. HAD NOT DISPUTED THE EXPORT AND THERE CAN BE NO SALE WITHOUT PURCHASE. III) THE ASSESSEE HAD SHOWN PURCHASES FROM SHRI RAM ESH CHAND CHAJER AND SMT. TARADEVI CHAJER AT A LOWER RA TE, THAN THE PURCHASES OF THE SAME MATERIAL FROM ANOTHER COMPANY PRABHA SILK. THUS THE ASSESSEE HAS SHOWN MORE PROFIT BY AP PLYING LESSER PURCHASE RATES. IV) THE ASSESSEE HAS NOT INFLATED THE PURCHASES ON THE CONTRARY THE PURCHASES FROM SHRI RAMESH CHAND CHAJE R AND SMT. TARADEVI CHAJER WERE DEFLATED AS COMPARED TO P URCHASES OF SAME GOODS FROM OTHER SUPPLIES. 5 V) IT WAS FURTHER SUBMITTED THAT THE ASSESSEE WAS N OT GIVEN AN OPPORTUNITY TO CROSS EXAMINE THE WITNESSES. 4.3 DURING THE COURSE OF APPELLATE PROCEEDINGS, THE APPELLANT WAS GIVEN AN OPPORTUNITY VIDE LETTER DATED 21/11/20 11 TO PRODUCE SHRI RAMESH CHAND CHAJER AND SMT. TARADEVI CHAJER SO THAT THE APPELLANT MAY BE GIVEN AN OPPORTUNITY F OR CROSS EXAMINATION. HE WAS ALSO ASKED TO FURNISH BANK PASS BOOKS OF SHRI RAMESH CHAND CHAJER AND SMT. TARADEVI CHAJER. 4.4 THE AR OF THE ASSESSEE VIDE LETTER DATED NIL SUBMITTED THAT SINCE SHRI RAMESH CHAND CHAJER AND S MT. TARADEVI CHAJER HAD A MARRIAGE IN THEIR FAMILY, THE Y HAD GONE OUT OF STATION TO ATTEND THE SAME. ANOTHER OPPORTUN ITY WAS GRANTED TO THEM ON 30/11/2011 TO PRODUCE THE WITNES SES ON 12/12/2011. HOWEVER, ON THE GIVEN DATE THE TWO WITN ESSES WERE NOT PRODUCED INSTEAD AN AFFIDAVIT WAS FILED ATTESTE D BY THE NOTARY ON 12/12/2011 ITSELF WHEREIN BOTH THE WITNES SES HAD DEPOSED THAT THEY COULD NOT APPEAR BECAUSE THEY WER E GOING OUT OF STATION FOR PURCHASE OF CLOTH. IT WAS ALSO SUBMI TTED IN THE AFFIDAVIT THAT IN THE YEAR 2007-08 CLOTH HAD BEEN S UPPLIED BY THEM TO THE APPELLANT AT THE AVERAGE RATE OF RS. 27 1.51 PER METER WHEREAS THE OTHER PARTIES HAD SUPPLIED THE CLOTH TO M/S FLORALS INDIA AT THE AVERAGE RATE OF RS. 276.14 METER (AFFI DAVIT OF SMT. TARADEVI CHAJER). SHRI RAMESH CHAND CHAJER IN HIS A FFIDAVIT STATED THAT HE WAS LEAVING JAIPUR FOR PURCHASE OF C LOTHES AND THAT HE HAD SUPPLIED THE MATERIALS TO M/S FLORALS I NDIA @ RS. 262.88 PER METER WHEREAS THE OTHER PARTIES HAD SUPP LIED @ 276.14 METER. IT WAS STATED BY THE LD. AR OF THE ASSESSEE THAT OP PORTUNITY OF BEING CROSS EXAMINED WAS NOT ACCORDED TO THE ASSESSEE. HOWEVER , DURING APPELLATE PROCEEDINGS, THE LD. CIT(A) GAVE OPPORTUNITY TO PRO DUCE BOTH OF THEM BEFORE LD. CIT(A). SINCE THEY WERE NOT AVAILABLE AND THEY COULD NOT BE PRODUCED. 6 THE ASSESSEE FILED THE AFFIDAVITS OF THESE PARTIES WHEREIN THEY HAVE CONFIRMED THE IMPUGNED SUPPLIES. 2.4 ON THE OTHER HAND, THE LD. DR HAS REITERATED TH E REASONS GIVEN BY THE AO TO MAKE THE IMPUGNED ADDITION. 2.5 WE HAVE CAREFULLY EXAMINED THE ENTIRE RECORD IN THE LIGHT OF THE ORAL SUBMISSIONS OF THE PARTIES. IT IS A FACT THAT THE A SSESSEE IS 100% EXPORTER AND THE PURCHASES OF CLOTH DURING THE YEAR IS RS. 4.80 CRORES AS HAVE BEEN SHOWN BY THE ASSESSEE FIRM. WE HAVE FOUND THAT THERE IS L INKAGE IN CONSUMPTION OF CLOTH AND EXPORT SALES AS THE ASSESSEE FIRM IS DOIN G EMBROIDERY WORK ON CLOTH. THE QUANTITY OF PURCHASE IS FOUND MENTIONED ON PURCHASE BILLS AND QUANTITY OF EXPORTS IS MENTIONED IN THE EXPORT INVO ICE. THE SILK PURCHASES AMOUNTING TO RS.78,80,818/- FROM THESE TWO PARTIES CANNOT BE TREATED AS BOGUS BECAUSE EXPORT BILLS RAISED AND APPRAISED BY THE CUSTOM AUTHORITIES CONTAINS FULL DETAILS OF SILK EXPORTED. THE TOTAL E XPORT OF EMBROIDERED SILK CLOTH DURING THE ASSESSMENT YEAR 2008-9 WAS 77059.6 MTR. ALL THE EXPORT INVOICES OF SILK DURING THE YEAR ARE MENTIONED AT P AGE 112-187 OF THE ASSESSEE'S PAPER BOOK. THE POSITION OF PURCHASE OF SILK IS AS UNDER:- PURCHASES OF SILK PURCHASES DETAILS OF SILK DURING THIS YEAR IS GIVE N AT PB 104-106. DETAILS AREAS UNDER: SUPPLIER QTY (MTR) AMOUNT. RS. AVERAGE RA TE PER MTR (RS) 7 RAMESH CHAJJAR 14933.64 3925816.00 262.88 (PB 29 & 30-54) TARA DEVI CHAJJAR 14566.94 3955002.00 271.50 (PB 69 & 71-92) OTHER PARTIES 38722.78 10855659.00 273.28 TOTAL 69223.36 18736477.00 TOTAL EXPORTS OF SILK DURING THE YEAR IS 77059.6 MT R WHILE TOTAL PURCHASES OF SILK IS 69223.36 (INCLUDING PURCHASES OF RAMESH CHA ND CHHAJAR AND TARA DEVI CHAJJAR). QUANTITATIVE DETAIL OF SILK GIVEN AT PB-103 IS AS U NDER : IN MTR. OPENING STOCK OF SILK FABRIC PB 107 (A) 12199.53 PURCHASE OF SILK FROM (B) 69223.36 RAMESH CHAJJAR (PB 29) 14933.64 TARA DEVI CHAJJER (PB 69) 14566.94 OTHERS (PB 104-106) 39722.78 TOTAL SILK FABRIC (A+B) (C) 81422.89 CLOSING SILK FABRIC (RAW MATERIAL) PB 108(D) 1408 .30 WASTAGE OF SILK (E) 923.57 SILK CONSUMED DURING THE YEAR (C-D-E) 79091.02 TOTAL EXPORT OUT OF SILK CONSUMED (77059.60-622.55)-PB 111 76437.12 CLOSING FINISHED 2633.87 DIFFERENCE (20.00) 2.6 AFTER GOING THROUGH THE RECORD, WE HAVE NOTICED THAT THE AO HAS ACCEPTED THE OPENING STOCK, EXPORTS, CLOSING STOCK , GROSS PROFIT, QUANTITATIVE DETAILS AND OTHER TRADING RESULTS. THE AO HAS NOT POINTED OUT ANY MATERIAL. 8 THE PURCHASES ARE SUPPORTED BY VARIOUS DOCUMENTS WH ICH INCLUDES THE COPY OF COPY OF CONFIRMATION OF ACCOUNTS BY THESE PARTIE S, COPY OF PURCHASE BILLS WITH LEDGER ACCOUNT, COPY OF AFFIDAVITS GIVEN BY TH EM, INCOME TAX RETURNS FILED BY THE SUPPLIERS ALONGWITH COMPUTATION OF INC OME, PROFIT AND LOSS ACCOUNT AND BALANCE SHEET WHICH IS ALSO CERTIFIED B Y THE C.A. IN THE CASE OF SHRI RAMESH CHAJJER AND WHICH SHOWS THE BUSINESS TR ANSACTION, COPY OF BALANCE SHEET SHOWING THE CLEARANCE OF CHEQUE, COPY OF EXPORT BILLS THROUGH WHICH THE GOODS WERE EXPORTED AND RECONCILIATION OF CLOSING STOCK, QUANTITY OF SILK ACCEPTED BY THE DEPARTMENT TAKING PURCHASES FROM ALL THE PARTIES INCLUDING SHRI RAMESH CHHAJAR AND SMT. TARA DEVI CH HAJAR AND THE EXPORTS DURING THE YEAR. ALL THESE DOCUMENTS ARE ENCLOSED I N ASSESSEE'S PAPER BOOK AND HAS BEEN PRODUCED FOR OUR PERUSAL. WE HAVE GONE THROUGH THEM AND WE ARE SATISFIED THAT THE QUANTITATIVE DETAILS DISCUSS ED ABOVE, CANNOT BE EXPORTED WITHOUT PURCHASES AND CONSIDERING THE SILK PURCHASE S FROM SHRI RAMESH CHAND CHHAJAR AND SMT. TARA DEVI CHHAJAR, THE FINDI NGS OF THE AO AND THE LD. CIT(A) ARE NOT CORRECT. FURTHER, THERE IS DOWN FALL AND NET INCREASE IN THE RAW MATERIAL CONSUMPTION RATIO IN COMPARISON TO LAS T YEAR. THIS FACT IS CLEARLY ESTABLISHED AND THE FOLLOWING TABLE SUPPORT S OUR ABOVE FINDINGS. A.Y. TOTAL SALES RAW MATERIAL CONSUMPTION RATIO1 2007-08 63994629.00 39846083.00 62.26% 2008-09 88161928.00 49437578.00 56.07% 9 IN OUR CONSIDERED OPINION, THE ASSESSEE HAS CHARGED ITS BURDEN BY PRODUCING NECESSARY DOCUMENTS TO PROVE THE PURCHASES MADE BY IT WITH THE HELP OF PURCHASE BILLS, PANS, CONFIRMATIONS, AFFIDAVITS AND PAYMENTS MADE THROUGH ACCOUNT PAYEE CHEQUES WHICH WERE CREDITED IN THE AC COUNTS OF THE SELLER PARTIES. THE AO HAS NOT ACCORDED OPPORTUNITY OF CRO SS EXAMINATION OF SHRI RAMESH CHAND CHAJJAR AND SMT. TARA DEVI CHHAJAR TO THE ASSESSEE BEFORE ACCEPTING THEIR TESTIMONY. THIS ACTION OF THE AO IS IN VIOLATION OF THE AO IN VIEW OF THE DECISION OF HON'BLE JURISDICTIONAL HIGH COURT RENDERED IN THE CASE OF RAUNAQ FINANCE COMPANY (2004) 141 TAXMAN 72 WHEREIN IT HAS BEEN HELD THAT MERE STATEMENT CANNOT BE BASIS FOR D ISBELIEVING THE TRANSACTION UNLESS IT IS CORROBORATED WITH SOME OTH ER MATERIAL AVAILABLE ON RECORD TO SUPPORT THE STATEMENT. WE DO NOT AGREE WI TH THE OBSERVATIONS OF THE LD. CIT(A) AS THERE IS DIRECT LINKAGE OF PURCHASES AND SALES. THE CALCULATION OF THE LD. CIT(A) BY HOLDING THAT ASSESSEE'S CLAIM REGARDING WASTAGE/ SHRINKAGE IS NOT POSSIBLE TO CORRELATE THE PURCHAS ES DIRECTLY WITH THE SALES IS NOT CORRECT CALCULATION. IT IS NOT THE CASE OF THE DEPARTMENT THAT THE PURCHASE RATE/ QUANTITY OF SILK PURCHASES FROM THESE PARTIES IS LESS THAN THE RATE AT WHICH IT WAS PURCHASED FROM OTHER PARTIES ON DIFFER ENT DATES. THE AVERAGE PURCHASE PRICE OF SILK PURCHASED FROM SHRI RAMESH C HAND CHHAJAR DURING THIS FINANCIAL YEAR IS RS. 262.88 MTR WHILE FROM SM T. TARA DEVI CHHAJAR IT IS 10 RS. 271.50 PER METER AND LIKEWISE FROM OTHER PARTIE S IT IS RS. 273.28 PER MTR WHICH IS HIGHER FROM AVERAGE PURCHASE PRICE OF SHRI RAMESH CHAND CHHAJAR AND SMT.TARA DEVI CHHAJAR. AS OBSERVED BY THE AUTHO RITIES, THERE IS SHARP DECLINE IN GROSS PROFIT RATE INDICATING ANY CHANCES OF ADJUSTMENT FOR REDUCTION IN PROFITS. THE GROSS PROFIT RATE OF THRE E ASSESSMENT YEARS NAMELY 2006-07, 2007-08 AND 208-09 ALONGWITH TURNOVER IS AS UNDER:- A.Y. TURNOVER IN LACS GROSS PROFIT IN LACS GROSS PROFIT RATE 2006-07 500.57 139.20 27.81% 2007-08 639.94 190.20 29.72% 2008-09 881.61 258.65 29.34% THUS IT IS CLEARLY VISIBLE THAT THERE IS VERY NEGLI GIBLE DOWNFALL IN GROSS PROFIT RATE BY 0.38% AS COMPARED TO LAST YEAR. WE ARE IN A GREEMENT WITH THE LD. AR THAT IN CASE THIS AMOUNT IS ADDED THEN THE GROSS PR OFIT RATE FOR THIS YEAR WILL RISE TO 38.28% WHICH SEEMS TO BE A DIFFERENT FIGURE AS COMPARED TO THE ASSESSEE PAST HISTORY. REGARDING NOT MENTIONING THE REGISTRATION NOS. ON THE BILLS, WE AGREE THAT THERE IS NO NEED TO GET THE RE GISTRATION FROM COMPETENT SALES TAX AUTHORITY FOR SALE OF SILK CLOTH WHICH IS EXEMPT UNDER THE LAW. THERE CANNOT BE A MENTION OF CST/TIN ON THE SALE BILLS OF CLOTH BY THESE SUPPLIERS. SHRI RAMESH CHAND CHHAJAR HAS ACCEPTED THAT HE IS D OING BUSINESS OF TRADING OF CLOTH. WHILE REPLYING TO QUESTION NOS.4 AND 2 (COPY ENCLOSED AT PB 215) SHRI RAMESH CHAND CHHAJAR HAS REPLIED THAT HE HAD LEFT SERVICES OF 11 FLORALS INDIA AND WAS DOING TRADING BUSINESS OF CLO TH. HE ALSO PRODUCED SOME PURCHASE BILLS OF SILK FABRIC PURCHASED BY HIM AND COPY OF WHICH IS ENCLOSED AT ASSESSEE'S PAPER BOOK PAGES 216 TO 217. SHRI RAMESH CHAND CHAJJAR, UNDENIABLY, HAS ACCEPTED IN THE FORMER PAR T OF THE STATEMENT THAT HE HAS BEEN SUPPLYING GOODS TO M/S. FLOARALS INDIA WHI CH IS BEING PURCHASED BY HIM FRLM SHRI ICHALKARAN JI. HE ALSO PRODUCED FEW B ILLS OF PURCHASED MADE BY HIM ALONGWITH INCOME TAX RETURN IN SUPPORT OF HI S BUSINESS ALONGWITH BALANCE SHEET CERTIFIED BY THE CHARTERED ACCOUNTANT BUT IN THE LATER PART OF HIS STATEMENT, HE HAS MADE DIFFERENT STATEMENT. WE ARE IN AGREEMENT THAT THIS DIVERSION MAY DUE TO HIS PERSONAL REASONS AND HE MA Y BE TRYING TO SAVE HIMSELF FROM ANY LEGAL CONSEQUENCES ARISING THEREFR OM. THE EXPORTS OF THE ASSESSEE ARE NOT DOUBTED. MOREOVER, THE BOOKS OF AC COUNT OF THE ASSESSEE HAVE NOT BEEN REJECTED ON ACCOUNT OF UNVERIFIABLE P URCHASES AND WITHOUT REJECTING THE BOOKS, NO SUCH TRADING ADDITION CAN B E MADE. IN CASE ANY ADDITION IS TO BE MADE AFTER REJECTION OF THE BOOKS , ONLY PAST HISTORY HAS TO BE APPLIED. SINCE THE PAST HISTORY OF THE ASSESSEE IS ALMOST COMPARABLE WITH THIS YEAR, THERE IS NO NEED TO DISTURB THE DECLARED RESU LTS. ACCORDINGLY, WE REVERSE THE FINDINGS OF THE AUTHORITIES BELOW AND ALLOW THE APPEAL OF THE ASSESSEE. WE ORDER TO DELETE THE IMPUGNED ADDITION FROM THE H ANDS OF THE ASSESSEE FIRM. THUS THE SOLITARY GROUND OF THE ASSESSEE IS ALLOWED. 12 3.0 IN THE RESULT, THE APPEAL OF THE ASSESSEE STAND S ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 31-01-2 014. SD/- SD/- (.N.K. SAINI) (HARI OM MARATHA) ACCOUNTANT MEMBER JUDICIAL MEMEBR JAIPUR DATED: 31 ST JAN 2014 *MISHRA COPY FORWARDED TO:- BY ORDER 1. M/S. FLORALS INDIA, JAIPUR 2. THE ADDL. CIT, RANGE 2, JAIPUR 3. THE LD. CIT(A) 4. THE LD. CIT 5. THE DR 6. THE GUARD FILE (IT NO.168/JP/12) A.R., ITAT, J AIPUR 13 14