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TMI Blog2016 (11) TMI 802X X X X Extracts X X X X X X X X Extracts X X X X ..... our of the assessee. Therefore, we are of the opinion that the view taken by the Tribunal is required to be reverted and the view taken by the CIT (Appeals) is required to be restored. - Decided in favour of the assessee - DB Income Tax Appeal No. 09, 10, 11, 13, 14/2003 - - - Dated:- 15-11-2016 - K. S. Jhaveri And Mahendra Maheshwari, JJ. Mr. A. Kasliwal with Dr. P.C. Jain for the appellant Ms. Parinitoo Jain for the respondent ORDER By The Court 1. By way of these appeals, the assessee has challenged the judgment and order passed by the Tribunal whereby the Tribunal has partly allowed the appeal preferred by the assessee as well as the appeal preferred by the Department. 2. This Court while admitting the appea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ority in having drawn an adverse inference about the gross profit rate inspite of the fact that the Books of Accounts have been maintained strictly in accordance with the well established practices of the Appellant accepted by the Department for last so many years and whether the finding of Tribunal is perverse? Substantial question of law for assessment year 1995-96: Whether in any continuing process industry each day's consumption of raw material should be shown in the Accounts Books and failure of the same would justify the invocation of 145(1) I.T. Act so as to increase the Gross Profit from 5.75% to 6% especially when the Accounts Books were not found incorrect by any of the authorities and whether the finding of Tribun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was asked to give reasons for the low yield. The assessee was stated that the yield depends on the quality of mustard seed crushed. Day to day stock register is maintained for mustard seed, crushed and oil cake produced and sold. Whatever, yield was received has been shown in the books of accounts and stock register. 3.2. He has also taken us to the record of CIT (Appeals), para 2.2 which reads as under: The counsel for the appellant has contended that it is a fact that net weight of the mustard seed is recorded in the stock register. But it does not seen that the seeds are superior quality. Further, it has been contended that appellant has maintained complete books of account including stock register in respect of oil and khal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ide. For this purpose, lumpsum addition is required to be sustained. It will be reasonable if an addition of ₹ 40,000/- is sustained, to cover-up the possible leakages and order accordingly. The appellant will get a relief of ₹ 1,41,760/- on this account. 3.4. He has also taken us to the order of the CIT (Appeals) where the Tribunal while considering the case in para 8 has observed as under: During the course of argument, the ld. A/R relied on the ratio laid down by ITAT Jaipur Bench decision in the case of ACIT vs. B.R. Oil Mills, 26 Tax World 43 which it was observed that the trading addition for low yield cannot be justified in the absence of any direct evidence found during the search to the effect that actual yie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ss Profit G.P. Rate Net Profit Before taxation, interest Remmeration N.P. Rate 1. 1988-89 80531312.28 5701751.82 7.09% 1314117.00 1.63% 2. 1989-90 138690039.99 7680770.75 5.54% 1517967.52 1.09% 3. 1990-91 98911852.00 6377494.00 6.45% 1018668.57 1.03% 4. 1991-92 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 02703.86 33505360.73 9.13% 19626319.33 5.35% 13. 2000-01 197840856.49 19383711.30 9.80% 7053487.68 3.56% 5. Taking into account the net profit which is maximum 6.07% to minimum 0.60% and even if that is taken average net profit will come to around 3%. Taking into account, the counsel for the appellant contended that the view taken by the Tribunal is just and proper and no interference is called for. 6. We have heard learned counsel for both the parties. 7. Taking into account the observations which have been made by the CIT ( ..... X X X X Extracts X X X X X X X X Extracts X X X X
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