9911796707
TMI Blog2014 (3) TMI 586X X X X Extracts X X X X X X X X Extracts X X X X ..... only there was a considerable deviation in the GP rate, the consumption of various raw materials also shown unusual pattern of deviation compared to the previous years - the assessee gave no explanation for extraordinary deviation in consumption of certain raw materials – as such no question of law arises for consideration – Decided against Assessee. - Tax Appeal No. 98 of 2014 - - - Dated:- 11-3-2014 - Akil Kureshi And Sonia Gokani,JJ. For the Appellant : Mr. Tej Shah, Advocate ORDER (Per : Honourable Mr. Justice Akil Kureshi) 1. The appellant has challenged the judgment of IncomeTax Appellate Tribunal dated 25.07.2013. Following questions are presented for our consideration: A. Whether on the facts and in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n average sale price the GP has gone down. The AO has wrongly inferred that such increase has no effect, since average price of raw material has not effect. It is also a fact that decline in average sale price and increases in cost of the raw materials are major reasons for fall in GP. Considering the above I find no justification for making such arbitrary addition for impugned suppression of profit. The AO is therefore directed to delete the addition made of Rs.96,22,650/and more particularly when the AO failed to point out any specific defects in the books of accounts. 20. We also find that this issue has been discussed by the AO in para 23 of the assessment order on page nos.12 to 16 thereof. The AO has noted that the GP rate was 45. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the present year, as compared to the preceding year. The AO has noted four items of such raw materials, for which the prices have gone down in the present year, and these raw materials were silica sand, felospar power, dolomite power and activate carbon. Thereafter, the AO has worked out the percentage of various expenses heads to sales and has noted that consumption of raw material to sales in the present year is 26%, as compared to 20% in the preceding year. The AO has also noted that there is a significant fall in the cost of power and fuel, which has gone down to 11.97% in the present year, as compared to 13.94% in the preceding year, and therefore, even if there is some increase in some expenses, the same is offset by such decline ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d High Court in case of Deputy Commissioner of Incometax, Lucknow Vs. Hanuman Sugar (Khandsari) Mills (P.) Ltd., reported in (2013) 38 taxmann.com 53 (Allahabad). Several other judgments in the same line were also cited. We however, do not find any necessity to duplicate such references on the points. 4. Having thus heard the learned Counsel for the appellant and having perused the documents on the record, we find that the issue is based on evidence on record and thus purely factual in nature. It is not the case where the books of accounts are rejected, merely on the basis of deviation in GP rate as recorded by the Assessing Officer and reiterated by the Tribunal. Not only there was a considerable deviation in the GP rate, the consumptio ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
