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TMI Blog2017 (12) TMI 1250X X X X Extracts X X X X X X X X Extracts X X X X ..... ides and the various other aspects of the case including the increase in the sales turnover by 3.5 times in the year under consideration in comparison to immediate preceding year, the estimate of G.P. at ₹ 1,51,811/- lacs is justified, therefore, the Bench uphold the order of the ld. CIT(A) on this ground. Accordingly, grounds No. 2 and 3 are dismissed. Disallowance of shops expenses, telephone expenses and low household withdrawals - Held that:- Since, the addition on account of estimating of gross profit and rejection of books of account has been sustained, therefore, in view of the various decisions of the Hon’ble Jurisdictional High Court on this issue, no specific additions out of expenses debited in P&L account can be sustain ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... total Shop Expenses of ₹ 46,690/- without there being any basis and without appreciating the facts of the case and the ld. CIT (Appeals)-3, Jaipur also erred in confirming the same. 5. That the ld. AO further erred in disallowing telephone expenses in the amount of ₹ 4,077/- i.e. 20% of total Telephone Expenses of ₹ 20,387/- merely on probability of personal use and without considering the facts of the case and the ld. CIT (Appeals)-3, Jaipur also erred in confirming the same without considering the submissions made by assessee. 6. That the ld. AO grossly erred in making addition of ₹ 58,500/- on account of low household withdrawals by allegedly estimating household expenses at ₹ 15,000/- per month ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessment order. Therefore the action of the Assessing Officer for application of provision u/s 145(3) is justified and as per law. Next issue regarding the estimation of Gross Profit and making the addition on account of low Gross Profit rate. The A/R of the appellant argued that no basis of estimation by the AO. There is force in the argument of the A/R of the appellant that the AO made the addition of ₹ 3,04,903/- without any basis. The A/R of the appellant taken the argument that his turnover increase 3.5 times in this year compare to the last year. The Gross Profit decreased due to the increase of sales and competition in the market. There is force in the submission of the A/R of the appellant that AO made addition without ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... other aspects of the case including the increase in the sales turnover by 3.5 times in the year under consideration in comparison to immediate preceding year, the estimate of G.P. at ₹ 1,51,811/- lacs is justified, therefore, the Bench uphold the order of the ld. CIT(A) on this ground. Accordingly, grounds No. 2 and 3 are dismissed. 8. In the grounds No. 4 to 6 the issues involved are sustaining the disallowances out of shops expenses, telephone expenses and low household withdrawals respectively. The ld. CIT(A) has dealt these issues by holding as under: ( i) I have carefully considered the material before me. I find that all shop expenses are not fully vouched. Therefore I confirm the addition made by the AO of ₹ 9,33 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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