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TMI Blog2014 (5) TMI 702X X X X Extracts X X X X X X X X Extracts X X X X ..... no sales out of opening stock, the increase in sales would have been even lower - It shows that either the assessee has inflated the expenses or depressed the sales - The cases relied upon by the assessee cannot be followed as they were based on individual fact situation involved and the Court in view of the findings of fact – no substantial question of law arises for consideration – Decided against assessee. - ITA No. 250 of 2012 (O&M) - - - Dated:- 28-1-2014 - Ajay Kumar Mittal And Anita Chaudhry,JJ. For the Petitioner : Mr. Deepak Aggarwal For the Respondent : Ms. Savita Saxena ORDER Ajay Kumar Mittal,J. 1. This appeal has been preferred by the assessee under Section 260A of the Income Tax Act, 1961 (in shor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y rice, rice bran, husk and phak. During the assessment year 2007-08, the assessee had shown a gross profit of Rs. 24,75,369/- at the rate of 7.39%. Therefore, the assessee was asked to file the comparative figures of gross profit for the last year and while invoking the provisions of section 145(3) of the Act, the books of account of the assessee were rejected by the Assessing officer and additions had been made on different grounds vide order dated 18.11.2009, Annexure A.1. Aggrieved by the order, the assessee filed appeal before the Commissioner of Income Tax (Appeals) [CIT(A)]. The CIT(A) vide order dated 31.1.2011, Annexure A.2 partly allowed the appeal while upholding all the additions though reduced in quantum and rejecting the books ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation relates to whether the assessing authority was justified in rejecting the books of account which was upheld by CIT(A) and the Tribunal. The Assessing Officer while rejecting the books of account has made comparison with regard to financial results for the assessment year 2006-07 and current year 2007-08 as under:- A.Y.2006-07 A.Y.2007-08 Paddy Consumption (own)20020 Qtls 31925.58 Qtls Yield percentage13049.45 Qtyls 65.18% 20813.43 Qtls 65.19% Custom milling27156 Qtls 15983.60 Qtls Yield (Rice SF)17704 10419.75 Total paddy millin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... price is all set to rise accordingly. The assessee's argument (B) above needs no comments as it will only reduce the gross profit which will again go against the assessee. Thus, the assessee's submission for low G.P. is dismissed. Further the reasons for rejecting the books of account were noticed as under:- Besides low G.P. there are other deficiencies in the books of accounts which have been dealt with in the following paragraphs in detail. However, the same are discussed briefly as under:- a. The assessee has underreported yield of rice @ 65.19% as against 67% given to FCI. Para 4 b. The assessee has transferred rice superfine to FCI at 289.28 qtls. from own stock para 5 c. The assessee has underreported paddy ..... X X X X Extracts X X X X X X X X Extracts X X X X
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