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TMI Blog2015 (8) TMI 1098X X X X Extracts X X X X X X X X Extracts X X X X ..... controversy involved is common, both the appeals are being decided by this common order. 3. The brief facts, which are relevant for disposal of the present appeal, are that the respondent-assessee is a partnership firm and is carrying on business of manufacturing of edible oil and oil cake from mustard oil and sale thereof. It is claimed that the assessee maintains complete books of accounts supported by supporting material and accounts are audited. The assessee is also maintaining complete details of production of edible oil and stock register/production register in quantitative details of the trading account, which was placed before the Assessing Officer (for short, 'AO'). 4. During the course of assessment proceedings, the AO, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f Rs. 47,07,724/- by applying GP Rate of 1.98% as was applied earlier as against shown at 1.39%. 6. The assessee challenged the matter in appeal before the Commissioner of Income Tax (Appeals) (for short, 'CIT(A)') who upheld the finding of the AO that the books of accounts have rightly been rejected, however, reduced the trading addition by adopting GP Rate of 1.75% upholding the addition of Rs. 2,80,383/- in the Assesssment Year 2008-09 and GP Rate of 1.50% upholing the trading addition of Rs. 8,82,962/- in the Assessment Year 2009-10. 7. Both the AO as well as the assessee carried the matter in further appeal before the Tribunal who accepted the contention of the assessee that the manner in which the record was maintained, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g gone into the issue once again has come to the conclusion that merely because qualitative record was not maintained and on this premise, the books of accounts could not have been rejected. It is also an admitted fact that mustard seed is only single commodity used by the assessee for manufacturing of mustard oil and the Tribunal noticed that the assessee filed yield percentage for two months before the AO in which no discrepancy was found by the AO. The Tribunal has found that the production of mustard oil is a continuous process and the seeds are put into the milling for continuous oil production. The Tribunal has further found that 80% of its mustard oil is by way of trading sale and neither discrepancies were noticed by the AO in eithe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e amount of tax payable by an assessee. The provision by itself does not deal with the addition or deletion in the income. Best judgment is also based on the material available on record and therefore, while making an addition something more is to be collected by the AO who makes assessment of an assessee. As pointed out above, merely because there is some deficiency of quality wise record in the books of accounts, or merely because of rejection of the books of accounts, it does not mean that it must necessarily lead to addition in the return of income of the assessee. As noticed earlier, even the AO estimated the income by making estimated addition by applying a particular GP Rate so also the CIT(A) reduced it further. Therefore, these two ..... X X X X Extracts X X X X X X X X Extracts X X X X
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