9911796707
TMI Blog2015 (11) TMI 1541X X X X Extracts X X X X X X X X Extracts X X X X ..... of which size and quality are more relevant. No transaction could take place in the diamonds trade without considering these criteria. Hence, non maintenance of quality-wise stock register was certainly a deficiency on the part of the assessee. Accordingly, in our view the ld. CIT(A) was justified in sustaining the addition to 0.1% of the turnover, considering the fact that the GP of the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has challenged the decision of ld. CIT(A) in confirming the gross profit addition to the extent of 0.1%. 3. We heard the parties and perused the record. The assessee is the Proprietor of M/s Luminous Diamonds engaged in the business of Trading in Diamonds. During the course of assessment proceedings, the AO noticed that the gross profit and net profit declared by the assessee was lower than th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ccordingly submitted that the rate of net profit and gross profit has come down due to the above said loss. However, considering the deficiency in the maintenance of stock register, the AO made the addition to the gross profit computed at the rate of 0.5% of turnover to the gross profit of the assessee. The ld. CIT(A) reduced the said addition to 0.1 percent. 4. The ld. CIT(A) noticed that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tted that the ld.CIT(A) was not justified in confirming the addition to the extent of 0.1 %. He has placed reliance on the following case laws and submitted that non-maintenance of stock register cannot be a ground for rejection of books of account: a) CIT vs. BINDALS APPARELS (2011) 332 ITR 410 (Del) b) CIT V/s JAS JACK ELEGANCE EXPORTS(2010) 324 ITR 95 (Del) c) CIT vs. Paradise Holidays ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
