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TMI Blog2016 (7) TMI 1259X X X X Extracts X X X X X X X X Extracts X X X X ..... d:- 5-7-2016 - SHRI P.K. BANSAL, ACCOUNTANT MEMBER AND SHRI MAHAVIR PRASAD JUDICIAL MEMBER Appellant by Shri Amit Nigam, DR Respondent by Shri Rakesh Mishra, Advocate O R D E R PER: MAHAVIR PRASAD, JM. This appeal is preferred by the Revenue against the order of Ld. CIT(A)-II, Lucknow dated 13.08.2015 for the Assessment Year 2012-13. 2. The sole ground of the assessee is as under:- The Commissioner of Income tax (Appeals), Lucknow has erred in law and on facts of the case in restricting the disallowances to 0.1% i.e. ₹ 11,63,855/- of total turnover as against the addition of ₹ 66,54,087/- made at the rate of 0.65% of GP by Assessing Officer after rejecting the books of accounts of the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y. But in comparison, he had very low Gross Profit and Net Profit because he had trading with only one firm, yielding thereby a low margin. It was, accordingly requested during the assessment proceeding to accept the trading results of his business. The AO, however, relying upon the comparative book results of following assessees; who were in the same line of business in the same very financial year, rejected the book results of the assessee and applied the average G.P. rate of these assessees, while making the impugned addition:- S.No. Name Turnover GP% NP% 1. Sh. Rakesh Kumar, Prop, Jai Matadi Tranders 22,55 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e CIT(A) who has restricted the disallowances to 0.1% i.e. 11,63,855/- of total turnover as against the addition of ₹ 66,54,087/- made at the rate of 0.65% of GP by the Assessing Officer after rejecting the books of account of the assessee. The relevant observation of the CIT(A) which reads as under:- I have very carefully gone through the assessment order and the arguments made by the Ld. counsel of the appellant and am of the view that the cornparables adopted by the Ld. AO are not appropriate in as much as there are marked differences in terms of turnover and other peculiar conditions specific to the appellant. It cannot be denied that the turnover of the appellant is far more than the turnovers of Shri Rakesh Kumar, Shri Balr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee. We further noted that the CIT(A) has applied GP rate of 0.1% on the total turnover which comes to ₹ 11,63,855/-. The difference ₹ 54,90,232/- (66,54,087-11,63,855) . The CIT(A) has restrictedthe disallowances to 0.1% i.e.Rs.11,63,855/- of total turnover as against the addition of ₹ 66,54,087/- made @ 0.65% by Assessing Officer after rejecting the books of account of the assessee. 7. The ld. D.R. has contended that the Assessing Officer has estimated the business profit at 0.65% of the total turnover, resulting into an addition of ₹ 66,54,087/- after rejecting the books of account, but the ld. CIT(A) has restricted the disallowances to 0.1% i.e. ₹ 11,63,855/- of total turnover as against the additi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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