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TMI Blog2011 (6) TMI 834X X X X Extracts X X X X X X X X Extracts X X X X ..... of addition of ₹ 61,21,033/- on account of low gross profit. During the assessment proceedings, the AO asked the assessee to produce purchase register, stock register, inward and outward register for verification. The assessee stated before the AO that day to day sock register and inward and outward register were maintained on computer as per excise records and furnished the copy of the same before the AO. It was further stated that entries are made on the computer and no separate books for day to day stock or inward and outward register was maintained. The AO rejected the submission of the assessee saying that unless separate books are maintained for stock register, no entry could be passed in computer and, therefore, original books ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation of the rival submissions, we do not find any justification to interfere with the order of the learned CIT(A) in deleting the addition. The AO merely gone by the fact that there was a fall in the gross profit rate as compared to the preceding assessment year which itself is no ground to reject the books of accounts of the assessee. No specific defect in the maintenance of the books of accounts by the assessee has been pointed out AO. The AO further noted that day to day stock and inward and outward registers are maintained on computer. Perhaps, this was the sole reason which swayed the AO to reject the books of accounts and make the addition. Now-a-days it is common knowledge that all the records are maintained on computer including by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... this ground of appeal of the revenue. The AO merely made comparative study of the expenses for the year under consideration with the preceding assessment year and found that expenses incurred in the preceding assessment year were 2.89% on turnover but in the assessment year under appeal it was 4.78% on the turnover. The expenses were, therefore, found excessive without pointing out as to which of the expenses incurred by the assessee was not connected with the business activity of the assessee. The AO has not pointed out which of the expenditure were not admissible in law. In the absence of any pointing out inadmissible expenses, the AO cannot make addition merely by comparing the expenditure with the preceding year s expenditure. The l ..... X X X X Extracts X X X X X X X X Extracts X X X X
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