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TMI Blog2015 (12) TMI 136X X X X Extracts X X X X X X X X Extracts X X X X ..... d CIT(A) has discussed the reasons for decline of GP rate i.e. competition in market, dollar price and recession in international market, which has not been controverted by the ld DR. Therefore, we uphold the order of the ld CIT(A). - Decided against revenue - ITA No. 929/JP/2013 - - - Dated:- 9-10-2015 - SHRI T.R.MEENA, AM SHRI LALIET KUMAR, JM For The Revenue : Shri O.P. Bhateja (Addl.CIT) For The Assessee : Shri G.G. Mundra (CA) ORDER PER T.R. MEENA, A.M. This is an appeal filed by the revenue against the order dated 02/09/2013 of the learned C.I.T.(A)-II, Jaipur for A.Y. 2010-11. The sole ground of appeal is reproduced as under:- (i) Deleting trading addition of ₹ 54,98,268/- made by A.O., witho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ich gross profit of more than ₹ 3.49 crores had been declared thereby giving GP rate of 15.55% as against GP of more than ₹ 3.55 crores declared on total turnover of more than ₹ 18.45 crores thereby giving G.P. rate @ 20.62% for the A.Y. 2009-10. The assessee s sale had increased by ₹ 4.00 crores whereas the gross profit rate declined by about 5% in comparison to the immediate preceding year. The Assessing Officer gave reasonable opportunity of being heard on this issue. The assessee also filed reply vide letter dated 05/2/2013, which has been reproduced on page 2 and 3 of the assessment order by the Assessing Officer. After considering the assessee s reply, the ld Assessing Officer held that the assessee had not mai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee was considered by him as also mentioned in preceding para that the assessee had not maintained any quantitative and qualitative details of opening and closing stock and had also not maintained any day to day stock register or manufacturing register. Therefore, he rejected the book result U/s 145(3) of the Act. He relied on the decisions of Hon'ble Supreme Court in the case of CIT Vs. British Paints India Ltd. 188 ITR 44 (SC) and CST Vs. H.Esuf Ali, H.M. Abdul Ali 90 ITR 271 (SC). After discussing the legal position, the ld Assessing Officer held that gross profit rate @ 20% was applied in A.Y. 2002-03 and subsequent years mainly in the ground there were unverifiable purchases from certain bogus parties. However, during the curr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f yield for finished goods or wastage in the manufacturing. Similarly the percentage of wastage/rejection would also depend on the quality of raw material. He further relied on the decision in the case of Hon ble Punjab Haryana High Court in the case of CIT Vs. Om Overseas 315 ITR 185 (P H) on rejection of books of account, not pointed out any specific defect. The ld Assessing Officer had rejected the books of account only on the ground that the assessee had not been able to get records of raw material consumed in respect of each and every item purchased by the assessee. By considering his predecessor s order as well as the Hon ble ITAT order in assessee s own case, he held that the ld Assessing Officer was not right in rejecting the book ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 15.55% in comparison to A.Y. 2009-10 where gross turnover was more than ₹ 18.45 crores with G.P. more than ₹ 3.55 crores with G.P. @ 19.25%. The GP was lesser by about 5.54 crores only in A.Y. 2009-10, which is evident from statistics submitted by the assessee during the assessment proceedings. In A.Y. 2009-10, it was achieved higher G.P. rate the export price of goods were raised and realization from export sale in US dollar converted into rupees was more because of higher exchange rate but the same affected to turnover of company which fell down by 33%in this year as compared to immediately preceding year and by about 44% from A.Y. 2008-09. The assessee company, therefore, to achieve more turnover competitive foreign market an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eclared gross profit rate of the year is fair and reasonable and fall from declared gross profit rate in this year from A.Y. 2009-10 having been fully explained and so declared gross profit for the year deserves to be accepted. The appeal order passed by the CIT(A) is after considering all the above facts and past history of the case and is a detailed and fully reasoned order which deserves to be confirmed. Accordingly, he prayed that the appeal filed by the department has no merits and deserves to be dismissed. 5. We have heard the rival contentions of both the parties and perused the material available on record. The Coordinate Bench had decided the identical issue for A.Y. 2008-09 in ITA No. 220/JP/2012 whereas the following observati ..... X X X X Extracts X X X X X X X X Extracts X X X X
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