9911796707
TMI Blog2013 (11) TMI 269X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee are as under: "1.1 The order passed u/s. 250 on 20-12-2012 for A.Y.2008-09 by CIT(A)-VIII, Abad is wholly illegal, unlawful and against the principles of natural justice. 1.2 The Ld. CIT(A) has grievously erred in law and or on facts in not considering fully and properly the explanations furnished and the evidence produced by the appellant with regard to the impugned addition. 2.1 The Ld. CIT(A) has grievously erred in upholding the rejection of the book results of the appellant. 2.2 That in the facts and circumstances of the case as well as in law, the ld. CIT(A) ought not to have upheld the rejection of the book results of the appellant. 3.1 The ld. CIT(A) has grievously erred in upholding that the appellant had shown ext ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ustained. He submitted that the entire expenses on purchase of raw material has already been debited by the assessee in its books of accounts, and therefore, 100% of the unaccounted sales should be added as income in the hands of the assessee, and not merely the average GP at 36% of such extra consumption should be added, as done by the CIT(A). He submitted that the AO has passed a well reasoned assessment order in this case, and should be sustained. He relied on the order of the AO. 5. We have considered rival submissions carefully, and also the orders of the AO and the CIT(A). We find that the AO has pointed out a number of defects in account books of the assessee, which could not be explained by the assessee, and therefore, the accounts ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the assessee has disclosed the GP rate of 35.10% for this year and had disclosed GP at 38.51% in the immediately preceding year. The plea of the learned DR that the entire expenses on purchase of raw-material have already been debited in the books of accounts, and hence 100% of the unaccounted sales should be added as income of the assessee, is unsustainable. The CIT(A) has recorded a finding that the estimate of income has to be rightly rational as well as based on material on record, and that the entire sales or processing charges cannot be treated as income chargeable to tax, unless there is any material to come to such conclusion. He has cited decisions in the case of President Industries, 258 ITR 654 (Guj) and CIT Vs. Gurubachan Si ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... who are in the trading activity should maintain quantity details of goods traded. After a careful study of the facts brought on record during assessment proceedings, the A.O. had correctly worked out the GP at 25% of turnover." 10. We have heard both the parties. The issue in this ground of the Revenue is inter-linked with the issue in the grounds of the appeal of the assessee for the same assessment year 2008-2009 in ITA No.481/Ahd/2013. For the reasons recorded while disposing of the appeal of the assessee for the same assessment year 2008-2009, in the foregoing paras of this order, we hold that there is no mistake in the order of the CIT(A), and the same is accordingly confirmed and the ground of the appeal of the Revenue is dismissed. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... submitted that facts of the case are identical, as in the assessment year 2008-2009 of the assessee. 14. We have considered rival submissions. For the reasons recorded while disposing of the appeal of the assessment for A.Y.2008-2009 in ITA No.481/Ahd/2013 in the foregoing paras of this order, we hold that the books of accounts were rightly rejected by the department, and confirm the order of the CIT(A) on this issue. 15. Other issue in this appeal of the assessee is regarding the estimation of extra consumption at 20% by the CIT(A) as against 40% by the AO. We find that the CIT(A) has given a finding that the working of the extra consumption made by the AO could not be upheld in toto because it suffers from various infirmities. The CIT(A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nsumption added by the AO. Both the parties before us submitted that the facts of this issue are identical with the facts of the issue in the case of the assessee for A.Y.2008-2009 in ITA No.481/Ahd/2013. 17. We have considered rival submissions. For the reasons recorded while disposing of this issue in the assessee's appeal for A.Y.2008-2009, in ITA No.481/Ahd/2013 in the foregoing paras of this order, we hold that the entire amount of extra consumption could not be added as income in the hands of the assessee, and that only profit element shown could be added as income. The CIT(A) has estimated the average GP at 35% as fair and reasonable estimate of income, considering the GP rate declared by the assessee in the relevant year as well as ..... X X X X Extracts X X X X X X X X Extracts X X X X
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