Section  36, 144, 145 of Income Tax Act, 1961— Rejection of books—  the assessee is into the business of reselling of electrical goods. Return of income for the year under consideration was E-filed on 29.09.2011. Return was selected for scrutiny assessment and accordingly, statutory notices were issued and served upon the assessee.
The Assessing Officer also issued notices u/s 133(6) of the Income-tax Act,  in the cases of 64 parties on test check basis. According to the Assessing Officer, none of the parties were found existing/traceable at the address specified in the confirmations filed by the assessee. the Assessing Officer rejected the books of account u/s 145(3) of the Act and proceeded to estimate profit and made addition. The CIT(A) was of the opinion that though the Assessing Officer has rejected the books of account, but has not given any cogent reason for estimating the higher profit. He, accordingly, deleted the entire addition. 
Court, therefore, do not find any reason to interfere with the findings of the CIT(A). the appeal of the revenue as well as the cross objections of the assessee stand dismissed. ---  Asstt. CIt vs. AB PAL ELECTRICAL PVT. LTD.[2020] 23 ITCD Online 52 (DELHI)