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requirement of law to maintain such records nor the assessee needed such details for the purposes of its business. The expenditure was charged to respective accounts on actual payment basis. As relevant details are available in the vouchers which was properly maintained and preserved, there was no need to enter such details in electronic data. The assessee reiterated that it was unable to produce hard copy of the documents desired by the Ld. AO as the same was destroyed in the fire. The soft copy of such documents was available on the customized package which cannot be copied or run at other places or computers. However, the assessee claimed to have compiled and furnished information as far as was practically possible in view of the event of fire and consequent destruction of important records. The assessee also produced records for different branches which were not destroyed in the fire. It was argued that the original assessment for three assessment years 2004-05, 2005-06 and 2006-07 was made u/s. 143(3); and, the books of account and all relevant records were produced during the course of the original assessment proceedings. The then AO had accepted the books of account as no adverse finding was recorded by him in the original assessment order(s). The book result was always accepted by the Ld. AO; and, routine disallowances only were made in the assessment order(s). Also, the method of record maintenance regularly followed by the assessee was never questioned or disputed by the Ld. AO. Moreover, no adverse material was found in course of the search or survey operation. It was contended at the assessment stage that, in view of the above, the book result could not be reviewed in the assessment proceedings u/s 153A of the Act.

(d) The AO required the assessee to furnish details of cash payments exceeding Rs.20,000/- made to the vehicle operators or owners in the financial years corresponding to the assessment years 2004-05 to 2010-11. It was submitted, and subsequently reiterated, before the AO that there was no single cash payment exceeding Rs.20,000/- within the meaning of section 40A(3). The books of account are audited u/s 44AB and the tax audit report duly submitted along with the regular return has certified that there was no violation of the provisions contained in section 40A(3). It was contended that cash payments of lorry charges was the normal custom; and, that it was also within the parameters of law. The AO observed in the assessment order that there are many transporters who make payments through banking channel for lorry hire charges as well as for expenses. If the assessee had made payments in cash, it was all the more important to maintain proper records. But, the assessee failed to substantiate its claim by producing supporting, records and documents on the ground that they were destroyed in fire.

details for the purposes of its business. The expenditure was charged to lorry hire charges account on actual payment basis. However, the assessee being public carrier maintains Lorry hire contract-cum-challan wherein all relevant particulars such as lorry number, driver's license number, etc. is mentioned for the purposes of record as well as for internal control. These contract-cum-challans form the primary documents on whose basis further record is compiled and maintained. It was further explained that party-wise ledger of various expenses as called for by the AO was not maintained in the financial records as there was no requirement of law to maintain such records nor the assessee needed such details for the purposes of its business. The expenditure was charged to respective accounts on actual payment basis. As relevant details are available in the vouchers which was properly maintained and preserved, there was no need to enter such details in electronic data. The assessee reiterated that it was unable to produce hard copy of the documents desired by the AO as the same was destroyed in the fire. The soft copy of such documents was available on the customized package which cannot be copied or run at other places or computers. The Ld AR contended that the appellant compiled and furnished as much information as was practically possible in view of the event of fire and consequent destruction of important records and electronic data. Secondly, the appellant also produced records for different branches which were not destroyed in the fire. The AO found no defect in the data that was produced before him at the assessment stage. Also, the AO found no defect "in the voluminous electronic data that was seized in course of the search and was naturally available with him. The Ld AR submitted that the original assessment for three assessment years 2004-05, 2005-06 and 2006-07 was made u/s 143(3); and, the books of account and all relevant records were produced during the course of the original assessment proceedings as was evident from the order sheets). The then AO had accepted the books of account as no adverse finding was recorded by him in the original assessment orders). The book result was always accepted by the AO; and, routine disallowances only were made in the assessment order(s). Also, the method of record maintenance regularly followed by the assessee was never questioned or disputed by the AO. The Ld AR submitted that the AO was insisting on production of records that was destroyed in the fire. Secondly, he insisted on production of detail in such form that was not possible to prepare from the financial record that was 14 I.T.A Nos. 1179, 1225-1226, 1426-1427, 1480-1482/ Kol/2012 & CO Nos.83,99,100 & 101/K/2012, Inland Road Transport Pvt. Ltd.

145(3). Above all, the issue relates to the assessment year 2007-08 which cannot be made the basis for drawing adverse inference in the year under consideration i.e. for the Asst Years 2004-05 to 2006-07.

4.6. We have heard the rival submissions and perused the materials available on record including the paper book filed by the assessee. The Learned DR at the outset doubted the fact of premises of assessee gutted by fire. According to him , only premises at 223 , Strand Bank Road , Kolkata was gutted by fire as evidenced in Learned CITA order. But the registered office of the assessee is at No. 221/2, Strand Bank Road, Kolkata. Hence the basic premise of the assessee that the premises was gutted by fire wherein the books of accounts together with several other documents were destroyed and hence, the books of accounts could not be produced before the Learned AO is patently false and under this scenario, the Learned AO had no other option but to resort to estimation of profits of the assessee u/s 145(3) of the Act. In response to this, the Learned AR argued that the search took place on 5.11.2009 and massive fire took place in Feb 2010 in the premises of the assessee which was widely reported in the media and in support of which he referred to the relevant paper cuttings and First Information Report (FIR) of Police in the paper book filed by him. It was argued that the assessee had duly replied to the notice of the Learned AO that the hard copies of various documents desired by the Learned AO prior to Feb 2010 could not be produced due to massive fire in the premises of the assessee in Feb 2010.