Law:

Section:

ORDER Mrs. Chitra Venkataraman, J. - Following are the questions of law raised by the assessee seeking admission of the Tax Case (Appeal) for the assessment year 2009-10:- "(1) Whether on the facts and circumstances of the case, the Tribunal was right in holding that the assessing officer can refuse to do a best judgment assessment, even though the assessee himself has admitted that his accounts are not full and complete? (2) Whether on the facts and circumstances of the case, the Tribunal was right in holding that books cannot be rejected and best judgment assessment cannot be done in a case where the accounts have been audited under Section 44AB? (3) Whether on the facts and circumstances of the case, the Tribunal ought to have taken into account the full and true disclosure made before the Settlement Commission regarding inflation of stock for earlier and subsequent years to decide the issue?" 2. The assessee is a firm engaged in the business of whole-sale and retail distribution of auto spares and accessories of two and three wheelers. The assessee returned the income of Rs.1,14,600/- and it is stated that the assessee had list of sundry creditors, which were numbering more than 1000. The assessee was called upon to get confirmation from all the Sundry creditors. Admittedly, the assessee produced confirmation letters from 264 parties and the assessee had offered the balance in respect of 84 parties amounting to Rs.16,49,000/- for taxation as creditors not traceable. The assessee stated in its letter dated 24.12.2011 that inspite of the strenuous efforts, they could not contact the several persons to obtain confirmation letters. Thus, the assessee requested the Assessing Officer to complete the assessment with a total addition of Rs.17,59,392/- including the returned amount. The Assessing Officer however pointed out that since more than two-third of sundry creditors remained unconfirmed, the assessment could not be completed as prayed for; further, a letter was given by the assessee on 28.12.2011, taking a strange plea that the accounts of the assessee being rejected, addition be made as per the figures submitted. The assessee also pointed out that the…

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