RAKESH PAUL SHARMA Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THIS appeal has been preferred under s. 260A of the IT Act, 1961 against the order passed by the Tribunal, Amritsar Bench in ITA No. 215/Asr/2002.

(2.) WE are in this case connected with the asst. yr. 1997 -98. The assessing authority had made trading addition of Rs. 5,13,140 after rejecting the books of account produced by the assessee. Aggrieved by the same, the assessee challenged the order of the AO, rejecting the books of account, before the CIT(A), who had found no illegality in the order passed by the AO rejecting the books of account. Orders passed by the authorities below were questioned by the assessee before the Tribunal.

(3.) THE first issue, which was considered by the Tribunal was whether the addition made by the AO amounting to Rs. 5,13,140, by rejecting the books of account and estimating the sales at Rs. 53 lakhs was correct or not. The Tribunal had also noticed that the authorities below had rejected the books of account recording cogent reasons and opined as follows :