9911796707
TMI Blog2012 (2) TMI 155X X X X Extracts X X X X X X X X Extracts X X X X ..... s of account and applied GP rate there is no justification for making any addition on the basis of same rejected account books on account of the defects in the account books. Payment of PF & ESI before date of filing of return - Held That:- In view of Sai Consulting Engineers P. Ltd (Ahmedabad bench), deduction allowed under 43B. - ITA No.273, 274 and 275/Ahd/2009 - - - Dated:- 5-1-2012 - S/SHRI G.C. GUPTA, BIJENDRA PAUL JAIN, JJ. Revenue by: Shri Anurag Sharma Assessee by: Shri S.K. Kabra O R D E R PER G.C. GUPTA, VICE-PRESIDENT: These three appeals by the Revenue for the Asstt.Year 2001-2002, 2003-2004 and 2004- 2005 are directed against the order of the Commissioner of Income- Tax (Appeals), Surat. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... issions carefully and have perused the orders of the AO and the CIT(A). We find that the issue of rejection of book of accounts is not before us as the assessee has not filed any appeal or cross-objection against the order of the CIT(A) holding the rejection of accounts of the assessee by the AO as valid. This leaves us to the only issue in this appeal regarding reasonableness of the GP rate applied. It is well settled that even in the best judgment assessment or in the case of rejection of books, the estimates of income must be honest and fair and should not be arbitrary, although some element of guess work is necessary. In this case, the assessee has achieved a high turnover of Rs.18.12 crores during the relevant period and has shown GP r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on the order of the AO. The learned counsel for the assessee has relied on the order of the CIT(A). 7. We have considered rival submissions and have perused the orders of the AO and the CIT(A). We find that there were certain defects in the books of accounts of the assessee and accordingly the CIT(A) has held that the AO was justified in rejecting the books of accounts and estimating the income. The GP rate of 10.65% shown by the assessee in the immediately preceding assessment year was applied to the turnover of the assessee after rejecting the books of accounts, resulting in addition of Rs.10,88,573/-. The CIT(A) has further held that once the accounts book of the assessee are rejected and the GP addition is made, it is not reasonable t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and on facts in deleting the 3% disallowance made by the AO on account of unverifiable consumption of colour and chemicals amounting to Rs.7,19,970/-. 3. On the facts and in the circumstances of the case and in law, the CIT(A) has erred in directing the AO to adopt the GP of earlier assessment year. 9. Both the parties before us submitted that the issues in the ground nos.1, 2 and 3 of the Revenue s appeal are identical to the ground nos.1, 2 and 3 of the Revenue s appeal for the earlier assessment year 2003-2004. 10. We have considered rival submissions. In view of our decision in the foregoing paragraphs of this order while deciding the appeal for the earlier asstt.year 2003-2004, we hold that there is no merit in the ground nos.1, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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