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TMI Blog2013 (7) TMI 810X X X X Extracts X X X X X X X X Extracts X X X X ..... st Assessee. - Income Tax Appeal No. -91 of 2009 - - - Dated:- 15-7-2013 - Hon'ble Sunil Ambwani And Hon'ble Surya Prakash Kesarwani,JJ. For the Appellant : S. D. Singh For the Respondent : C. S. C./R. B. Mishra ORDER This income tax appeal under Section 260A of the Income Tax Act, 1961 arises out of the order of the Income Tax Appellate Tribunal dated 17.7.2008 in ITA No.441 (Alld) of 2007 relating to the assessment year 2004-05. Learned counsel for the appellant has pressed the appeal on the following substantial questions of law:- "i. Whether, the books of accounts of the appellant could be rejected in absence of any finding recorded or reasons given for lack of satisfaction of the correctness or completeness of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ri S.D. Singh, learned counsel for the appellant submits that the Assessing Officer has not disapproved the accounting method adopted by the assessee. He has only gone on certain discrepancies in maintenance of accounts for rejecting the accounts, mainly on the reason that the gross profit rate of the year in question at 16.20% was less than gross profit in the previous year 17.92%. He has thereafter on the basis of the rejection in gross profit, when the turn over has increased by about 70% pointed out minor discrepancies in the account books for making additions in the gross profit at 16.75% and by which he has added Rs.18,97,371/- as per Item No.3 in the discussion made by him. The CIT (A) and the Tribunal have not considered these aspec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation is possible with regard to consumpt8on of Raw material (Quality wise and Quantity wise) and End product. 5. The assessee was specifically pointed out that rate of purchase was different and as such the consumption and production may be correlated especially in view of Variant Type of production but on this issue no reply was give." The explanation given by learned counsel for the appellant that raw material is given to the weavers and that when they bring the weaved carpet its quality is stamped at the time of acceptance, before the carpet is put to other processes was considered and not accepted by the Income Tax Authorities. It is difficult to accept, as it was observed by the A.O. that the appellant is not maintaining account ..... X X X X Extracts X X X X X X X X Extracts X X X X
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