9911796707
TMI Blog2017 (3) TMI 889X X X X Extracts X X X X X X X X Extracts X X X X ..... ent year by placing on record all necessary details which formed the necessary basis for the Assessing Officer to reject its book and arrive at estimated GP @45%. It has also come on record that he examined all the raw material items, their purchase prices, consumption as well as all other heads of expenses stated in the record at assessee’s behest only. It is evident that the Assessing Officer is very fair in admitting in his assessment order that the assessee could not get verified key component of its excess consumption of raw material in the impugned assessment year. All this indicates that the assessee’s supportive evidence justifying the above low GP ratio in the impugned assessment year lacked verification rather than being in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... trend in average sale price of the finished goods. It specifically quoted the latter head to have come down from ₹ 62 to ₹ 56/-. The Assessing Officer prepared a tabulation chart of the above two assessment years pertaining to assessee s raw materials consumption in his assessment order. He observed that this chart reveals low yields from main raw material items of silica sand, dolomite powder and felospar powder from 1.43% to 1.32%, 13.74% to 9.64% and 20.11% to 17.76%; respectively. He was of the view that assessee s submission of increase in purchase price was also devoid of merit since this cost had come down in respect of the said four items including the above three alongwith activated carbon; as compared to the preceding ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f only 42.99% in the present year, and hence, there is decline of 2.78% in the GP of the present year, as compared to the preceding year. To explain this fall in GP, it was submitted by the assessee, before the AO that the sale price has gone down from ₹ 62/- in the preceding year to ₹ 56/- in the present year. Thereafter, the AO has noted down yield percentage of various raw materials of the present year, as well as of the preceding year. From this chart of yield percentage of various raw-material in the present year and earlier year, we find that consumption of various raw- materials to the extent of nine raw-materials out of total 12 raw materials, have gone up in the present year. Such raw materials are, silica sand, dolomit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and fuel. Even after such analysis, the AO has adopted GP rate of 45% in the present year, as against 45.77% of GP in the preceding year. 21. From the above discussion, we find that the GP addition was made by the AO after examining all the aspects very carefully, but the learned CIT(A) has deleted such addition on simple basis that since there is a decrease in average sale price, fall in GP is explained. We, therefore, do not find any reasonable basis in the order of the CIT(A) for deleting this addition, and therefore, set aside the order of the learned CIT(A) on this issue, and restore that of the AO. This ground of the Revenue is allowed. Quantum proceedings are stated to have attained finality at this stage. 5. We now a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... preceding assessment year by placing on record all necessary details which formed the necessary basis for the Assessing Officer to reject its book and arrive at estimated GP @45%. It has also come on record that he examined all the raw material items, their purchase prices, consumption as well as all other heads of expenses stated in the record at assessee s behest only. It is evident that the Assessing Officer is very fair in admitting in his assessment order that the assessee could not get verified key component of its excess consumption of raw material in the impugned assessment year. All this indicates that the assessee s supportive evidence justifying the above low GP ratio in the impugned assessment year lacked verification rather tha ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
