9911796707
TMI Blog2012 (3) TMI 572X X X X Extracts X X X X X X X X Extracts X X X X ..... f an addition of ₹ 50,000/- is sustained in trading account that will meet the ends of justice, which will take care of decline in GP and other discrepancies found. Enhancement of household expenses - Held that:- As already sustained trading addition of ₹ 50,000/- which is more than the addition made by Assessing Officer on account of household expenses and since trading addition was available with the assessee for incurring expenses etc., therefore, we find no infirmity in the order of ld. CIT (A) in allowing set off of the income made on account of household expenses. Accordingly we confirm the action of ld. CIT (A). In fact, there will be no addition as household expenses is less than trading addition sustained. - ITA NO ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and estimated the sale at ₹ 1.30 crores against sales shown by assessee. The Assessing Officer further noted that GP rate in immediately preceding year was 14.2% whereas assessee has shown GP rate at 13.28% during the year under consideration. Accordingly he applied GP rate at 15%. 4. Submissions made before Assessing Officer were reiterated before ld. CIT (A). It was submitted that there is no basis for estimating the sale at ₹ 1.30 crores. Only in respect to valuation of closing stock certain discrepancies were found as books of account were incomplete. However, at the end of the year complete books of account were maintained. All purchases and sales were vouched. Therefore, there was no basis for estimating the sales. Reg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... asis of books of account. Since there were certain discrepancies in stock and marginal decline in GP rate, we are of the view that if an addition of ₹ 50,000/- is sustained in trading account that will meet the ends of justice, which will take care of decline in GP and other discrepancies found. We order accordingly. 7. The remaining issue is against upholding enhancement of household expenses from ₹ 40,000/- to ₹ 78,000/-. 8. During the assessment proceedings, the Assessing Officer noted that assessee has shown ₹ 40,000/- for household expenses. There were two persons in the family. The Assessing Officer was of the view that assessee is an established businessman and, therefore, household expenses shown by ass ..... X X X X Extracts X X X X X X X X Extracts X X X X
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