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TMI Blog2003 (9) TMI 326X X X X Extracts X X X X X X X X Extracts X X X X ..... difficult to produce them after a gap of years. From the record, we find that the AO could not prove the wild allegation that these purchases were bogus or the source of payment was unexplained. When the purchases are made from unregistered dealers in cash and in other words the purchases are unvouched, these can be considered as a defect in the maintenance of accounts and only them G.P. rate can be applied u/s145 of the IT Act. After peeping into the past history of the case or by quoting comparable cases, we do not find any infirmity in the order of the learned CIT(A). Therefore, the order of the learned CIT(A) is upheld. In the result, the appeal filed by the Revenue is dismissed. X X X X Extracts X X X X X X X X Extracts X X X X ..... 1,31,778 as: (i) The perusal of Trading a/c shows that AO admitted the sales of Rs. 8,29,646. The AO admitted the opening stock and closing stock. The AO admitted the wages amounting to Rs. 4,62,907 incurred on such marble slabs and blocks and other expenses like block cutting, loading, purchase tax, packing, royalty block dressing, etc. These expenses would not have been incurred if there was no purchases made by AO as without such purchases it was impossible to manufacture engraved marble worth Rs. 8,29,646. (ii) That the charge of AO about the reduction of G.P. rate is also not correct. The learned AO had not cited any case in which the G.P. shown was more. The G.P. shown by the assessee is almost same even on almost double turnover. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d such purchases. 5. We have considered the rival submissions and found that the AO held the purchases of Rs. 1,31,774 as fictitious mainly on the ground that these were not (sic) unvouched and purchases had been made in cash from unregistered dealers. The AO had admitted the sales and other expenses incurred on the material and also have accepted the sale of materials. Hence, there was no justification to reject the claim of purchases for want of proper vouchers or non-production of persons who sold the same. We agree with the contention of the learned authorised representative that the unregistered dealer normally do not stay at one place and it becomes very difficult to produce them after a gap of years. From the record, we find that th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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