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TMI Blog2012 (9) TMI 548X X X X Extracts X X X X X X X X Extracts X X X X ..... e comparable cases of the line relied upon by the AO had shown better results and the account books maintained by the assessee suffered from defects so as to warrant invoking of section 145(3) of the I.T." 2. ITA No.3755/Del/2011 is the appeal by the assessee in which following grounds are raised:- "1. That on the facts & in the circumstances of the case, the ld.CIT(A) has erred on law & facts by confirming the imposition of section 145(3) and upholding rejection of books of accounts despite furnishing of requisite information & documents including stock register. 2. That on the facts & in the circumstances of the case the ld.CIT(A) has erred on law & facts by applying the Gross Profit rate @ 4% (from 4.90% assessed by the ld.AO) against ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mparable case for AY 2007-08 is of Sat Paul & Sons wherein GP rate of 3.53% was disclosed. All other three cases were for earlier years. He stated that if earlier years are to be compared, then the assessee's own case is the best guide rather than other cases. If comparison is to be made with others, it should be for the same year. In either case, the GP disclosed by the assessee in the year under consideration is better. He further submitted that the rejection of books of account itself is unjustified because the assessee has maintained all the necessary details and the same were produced before the Assessing Officer also. However, since the assessee's GP is better than the earlier year and also better than the comparable case given by th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 232204.29 239771.82 367238.40 GP Ratio 2.37% 2.65% 3.63% 10. The assessment year under appeal is 2007-08. The comparable cases of other assessees are for AY 2004-05 to 2007-08. If we take the comparable cases of AY 2007-08, then we find that the GP rate for the comparable cases quoted by the Assessing Officer himself is 3.53% whereas in the case of the assessee, the GP rate is 3.63%. If we compare the trading result of the year under consideration as compared to earlier year in assessee's own case, we find that in AY 2006-07, the GP rate was 2.65% which is accepted by the Revenue in the order passed under Section 143(3) wherein the Assessing Officer held as under:- "Purchases and sales shown have been verified from the books of acco ..... X X X X Extracts X X X X X X X X Extracts X X X X
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