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TMI Blog2016 (10) TMI 346X X X X Extracts X X X X X X X X Extracts X X X X ..... venue by : Shri S.K. Jain (DCIT) Assessee by : Shri Manish Agarwal (CA) ORDER Per T. R. Meena, A. M. This is an appeal filed by the revenue against the order dated 05/12/2011 passed by the ld. CIT(A)-III, Jaipur for the assessment year 2008-09 wherein the Revenue raised following grounds as under: (i) The CIT(A) has passed a perverse order in restricting the trading addition of ₹ 73.94 lakhs to ₹ 5 lakhs on ad hoc basis. (ii) The CIT(A) has erred in observing that the fall in GP rate and non-maintenance of stock register, were not material even when the facts and circumstances, as detailed by the A.O., justified the invoking of provisions of Section 145(3). (iii) The CIT(A) has passed a perverse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g the addition by the ld CIT(A). The ld Assessing Officer observed that during the assessment proceedings, the assessee produced books of account consisting of computer generated cash book, ledger, sale and purchase register and various vouchers, which were test checked by him. The Assessing Officer asked the assessee to produce the stock register to verify the raw material, work in progress and finished goods. It is submitted that the assessee has not maintained quantitative and qualitative stock register of raw material, work in progress and finished goods as the assessee business is as such that it is not possible to maintain stock register on the basis of quantity and quality. It is also submitted that hundreds and thousands types of pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee s reply, it has been held that the assessee was failed to explain the market forces, which affected the GP rate of the assessee. After considering the past history of the case, the ld Assessing Officer applied GP @ 33% and addition of ₹ 73,94,851/- was made by the ld Assessing Officer. 3. Being aggrieved by the order of the Assessing Officer, the assessee carried the matter before the ld CIT(A), who had allowed the appeal partly by not confirming the rejection of books U/s 145(3) of the Act but a lump sum addition of ₹ 5.00 lacs was confirmed by observing that it is settled law that fall in GP and non-maintenance of stock register alone cannot be a valid reason for invoking the provisions of Section 145(3) of the Act, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d by the assessee are so complicated and number of items manufactured are in number of quantities and there are differences, finished process and also the size, length and width of production is different, which cannot be possible to maintain stock register, therefore, the assessee has not maintained quantitative and qualitative stock register, but the assessee had recorded purchase and sale and other expenses on the basis of bills vouchers and closing stock was taken on the last of the previous date, which has been verified and valued property and disclosed in the P L account and balance sheet. He further argued that whatever defects pointed out by the Assessing Officer are not sufficient to justify the rejection of books of account U/s 14 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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