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TMI Blog2013 (12) TMI 1197X X X X Extracts X X X X X X X X Extracts X X X X ..... There was no case of any cash deficit and reconciliation statement was duly furnished to the Assessing Officer and Assessing Officer has not disputed the correctness of the same – Decided in favour of assessee. - ITA NO. 5938/Del/2012 - - - Dated:- 8-2-2013 - Shri R. P. Tolani And Shri Shamim Yahya,JJ. For the Petitioner : Sh. R. S. Singhvi, CA For the Respondents : Dr. Sudha Kumari, C.I.T. (D.R.) ORDER Per Shamim Yahya: AM. This appeal by the Assessee is directed against the order of the Ld. Commissioner of Income Tax (Appeals)-XIII, New Delhi dated 04.9.2012 pertaining to assessment year 2009-10. 2. The grounds raised read as under:- 1.(i) That under the facts and circumstances of the case the lower authorities w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ppeal, Ld. Commissioner of Income Tax (A) held as under:- "The submission made by the appellant before Assessing Officer as well as before me is not addressing the defects and deficiencies found in the books of accounts of the appellant at the time of survey in cash found and in the inventory of closing stock and opening stock. Similarly, the increase in expenses was exceptionally high which was not found justifiable. The appellant's contention that number of stores had increased from 20 to 65. It is seen that most of the stores were open in the month of July, August, September and October 2007 and the increase was exceptionally high in expenses. Therefore, increase in number of stores cannot justify increase in expenses under the head le ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing stock at page no. 73- 74 of paper book. Observation Valuation of stock is done differently. Reply :- There is no change in valuation method. It can be seen from the reconciliation statement on page no. 73-74 of paper book. The diff. pointed out by the Ld. Commissioner of Income Tax (A) is due to amount of VAT in the closing stock of F.Y. 2007-08, however, the amount shown in balance sheet excludes value of VAT. Observation Decline in GP. Reply It can be seen that the GP rate has improved significantly from previous year. A.Y. 2006-07 : 20.121% A.Y. 2007-08 : 12.95% A.Y. 2008-09 : 9.03% A.Y. 2009-10 : 13.63% Also variation in GP rate is due to opening of new stores as per reasons submitted in letter dated 17.10. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... no. 94 (Q. 27,28) Observation Cash deficit found during the course of survey. Reply There was no case of any cash deficit and reconciliation statement was duly furnished to the Assessing Officer and Assessing Officer has not disputed the correctness of the same. Further, there is no case of any incriminating material either relating to trading activities or otherwise during the course of survey or assessment proceedings and whole basis of addition is without proper application of mind and in total disregard to full proof and comprehensive system followed by the appellant. 7. On the basis of the above said, assessee's submissions is that there is no legal or factual basis for invoking provisions of Sec. 145(3) of the I.T. Act. 7. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sources. Recruiting, Training, Payroll, Benefits, 401 K, Diversity Management, Retirement, Separation Manufacturing Engineering, Bill of Materials, Work Orders, Scheduling, Capacity, Workflow Management, Quality Control,Manufacturing Process, Manufacturing Projects, Manufacturing Flow, Product Life Cycle Management. Supply Chain Management. Supply Chain Planning, Supplier Scheduling, Order to Cash, Purchasing, Inventory, Product Configurator, Claim Processing. Project Management. Project Planning, Resource Planning, Project Costing, Work Break Down Structure, Billing, Time and Expense, Performance Units, Activity Management. Customer Relationship Management. Sales and Marketing, Commissions, Service, Customer Contact, Call ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g 4 years results as under:- "It can be seen that the GP rate has improved significantly from previous year. A.Y. 2006-07 : 20.121% A.Y. 2007-08 : 12.95% A.Y. 2008-09 : 9.03% A.Y. 2009-10 : 13.63% 7.4 Furthermore, it has been the observation of the Ld. Commissioner of Income Tax (A) that there is huge increase in expenses. In this regard, the assessee submitted that cost has come down in respect of various expenses and increase is only in respect of claim and other services. That in fact the increase in rent and other services were on account of opening new stores in respect of details were given. Furthermore, the entire claim of expenditure is supported from the audited accounts and the Assessing Officer has not found any mista ..... X X X X Extracts X X X X X X X X Extracts X X X X
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