9911796707
TMI Blog2013 (7) TMI 549X X X X Extracts X X X X X X X X Extracts X X X X ..... partment on following two substantial questions of law:- "1. Whether on the facts and in the circumstances of the case, the Hon'ble Tribunal was justified in law in deleting the addition of Rs.3,06,943/- made by the AO on a/c of unexplained investment in stock and confirmed by the Ld. CIT (A)-I, Kanpur by observing that the AO had accepted the GO rate of 19.8% disclosed by the assessee and also the average discount rate of 6.66% which was based on the sales of March, without appreciating that the assessee firm could not produce any evidence or the basis for substituting the GP rate from 20% to 19.8% and discount rate from 5% to 6.66%, respectively, or give the reason for changing the value of the stock admitted during the course of survey. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e stock found at the time of survey was pointed out to the assessee by the Assessing Officer, the assessee furnished the revised computation wherein the G.P rate was taken at 19.8%. The said G.P. rate had been accepted by the Assessing Officer and the average discount was taken @ 6.66% on the basis of the sale in the month of March. In the instant case, the survey took place on 11.3.2004 and the assessee applied the discount of the said month so, that should have been accepted instead of the earlier average discount taken at 5% particularly when neither the Assessing Officer nor the ld. CIT (A) pointed out that the G.P rate applied by the assessee at 19.8% and average discount @ 6.6% were wrong. If the said rates were to be applied there wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Trading Account were accepted, so there was no occasion to doubt the discount, while is also an item of trading account. Further more, the Assessing Officer worked out the discount only on the basis of 58 bills of 10.3.2004 while the discount claimed by the assessee was for the whole year and the discount worked out by the Assessing Officer @ 7.01% was only for the sale of Rs.2,01,530/- whereas the total sales of the assessee was of Rs.6,51,29,275/-. In other words, the sales considered by the Assessing Officer for calculating the discount at 7.01% was less than 0.33% of the total sales which is a meager amount, therefore, the Assessing Officer was not justified in working out the figure of discount on the basis of meager sale. In the ins ..... X X X X Extracts X X X X X X X X Extracts X X X X
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