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TMI Blog2016 (7) TMI 667X X X X Extracts X X X X X X X X Extracts X X X X ..... e sales are constitute 56.70% of total sales. The reasons given by the assessee for decline of GP are verifiable from the bill which shows that grey stone purchase price has increased from 11.54% to 31.21% whereas brown stone price increased from 5.88% to 17.65% compared to preceding year. However, sale price had not increased proportionately as evident by the AR of the assessee which has not been controverted by the ld. AR. - Decided against revenue - ITA No. 765/JP/14, C.O. No. 02/JP/2016 - - - Dated:- 31-5-2016 - Shri Shri T. R. Meena, AM And Shri Laliet Kumar, JM For the Revenue : Shri Purushottam Kashyap ( Addl. CIT ) For the Assessee : Shri P.C. Parwal ( C.A. ) ORDER Per T. R. Meena, A. M. The appeal filed by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ses of ₹ 56,08,293/- paid in cash on self made voucher. He further observed that in the absence of stock register the valuation of closing stock taken by the assessee is not correct. Call details register and log book were not maintained for vehicle running expenses respectively. Therefore, he proposed to apply provisions of section 145(3) of the IT Act. After considering the assessee s reply the AO held that various discrepancies has been noticed in the books of account as the assessee did not maintain proper record as required. Therefore, he applied section 145(3) of the IT Act and accordingly he rejected the books results by relying various decisions of various High Courts. He further observed that in past the ld. CIT(A) had also c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... around half of the turnover, the purchase price has increased more than the sale price. It is to be mentioned that the appellant has not given the quantum of turnover of either grey stone or brown stone where there is appreciable difference between the increase in purchase price and increase in sale price. In the absence of such turnover, it is difficult to ascertain the degrees in GP rate on account of difference between increase in purchase price vis a vis increase in sale price. Moreover with respect to 43.27% of the turnover, no reasons have been given for decrease in GP rate as compared to last year. It is to be mentioned that the GP rate in current year is 8.31% as against 19.35% in the preceding assessment year i.e. A.Y. 2007- 08(whi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ve chart of GP and admitted during the year the GP was slightly down by 1%, for the reason that average purchase price of grey and brown sand stone/slate stone had increase more than the increase in the selling price. He has drawn our attention of chart done at submissions and argued that purchase price which comparative gone up and he further argued that sale of the stone at 53.73% of total sale. Therefore GP had been gone down as compared to preceding year. Cost of material consumed as of purchase of sale had increased from 37.74% last year to 39.79% this year which would be fully verifiable from the purchase bill. He further argued that similar additions were made in A.Y. 2006-07, 2007-08 2008-09 which were challenged by the Hon ble IT ..... X X X X Extracts X X X X X X X X Extracts X X X X
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