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TMI Blog2016 (3) TMI 364X X X X Extracts X X X X X X X X Extracts X X X X ..... ssing Officer has not considered the profit on sale of the bullion. When the assessee purchased bullion to the extent of ₹ 1,85,34,411/-, the sale consideration on sale of bullion would be more than ₹ 1,85,34,411/-. If there is a stock of gold bullion in the earlier assessment year which was taken as opening balance for the year under consideration, then naturally the sale of such bullion has to be reflected in the ledger account of the assessee-company. In those circumstances, by considering the profit ratio of the assessee, this Tribunal is of the considered opinion that rejection of books of account is not justified. Merely because there was an error in the annual report, as rightly submitted by the ld. Counsel for the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , by rejecting the books of account, the Assessing Officer estimated the profit in all business of the assessee. According to the ld. Counsel, the Assessing Officer estimated the net profit at 2% in the business of bullion trading and all other businesses at 4%. On appeal by the assessee, the CIT(A), after considering the nature of business of the assessee, estimated the profit from bullion trading at 1%, gold ornaments at 1.30%. Similarly, profit from windmill was estimated at 44.34%, profit from textile business was estimated at 3.5% and profit from silver business was estimated at 1.5%. According to the ld. Counsel, the error in the annual report is with regard to bullion trading and not with regard to other business of the assessee. Mer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Ltd has sold gold bullion to the extent of ₹ 2,23,39,087/-. Since there was a difference with regard to purchase of gold bullion from M/s Gajaanand Jewellery Mart Pvt. Ltd, Coimbatore, the Assessing Officer found that there was a possibility of change in the profitability. Accordingly, the Assessing Officer estimated the profit in bullion trading at 2% and other business at 4%. The CIT(A) after considering the nature of business of the assessee, estimated the profit reasonably at 1% in bullion trading. In respect of other businesses, viz., gold ornaments, the profit was estimated at 1.30%, silver business at 1.50%, textile business at 3.5% and windmill business at 44.34%. Since the CIT(A) estimated the profit reasonably, according t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... consideration, then naturally the sale of such bullion has to be reflected in the ledger account of the assessee-company. In those circumstances, by considering the profit ratio of the assessee, this Tribunal is of the considered opinion that rejection of books of account is not justified. Merely because there was an error in the annual report, as rightly submitted by the ld. Counsel for the assessee, this will not have any impact on the profit of the assessee. When the assessee has recorded the entire purchases and sales of the bullion in the books of account, this Tribunal is of the considered opinion that estimating profit after rejecting the books of account is not justified. Accordingly, the orders of the lower authorities are set asi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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