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TMI Blog2018 (1) TMI 392X X X X Extracts X X X X X X X X Extracts X X X X ..... and circumstances, the Bench finds that the ld. CIT(A) was not justified in confirming the addition, therefore, the same is deleted. Assessee’s appeal is allowed. Lump sum disallowance made on account of various expenses debited in the P&L account - Held that:- After hearing both the sides on this issue, the Bench is of the view that sustaining the addition of ₹ 50,000/- is on higher side, therefore, in the interest of justice, equity and fairness, the disallowance of ₹ 25,000/- shall be reasonable. Hence addition up to 25,000/- is sustained and balance is deleted. - Decided partly in favour of assessee - ITA No. 903/JP/2017 - - - Dated:- 1-1-2018 - SHRI BHAGCHAND, ACCOUNTANT MEMBER For The Assessee : Shri S.L. Jain ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ( b) That on the facts and in the circumstances of the case Ld. CIT(A) has grossly erred in law and facts in confirming provision of section 145(3) for rejecting the audited books of accounts is not justifiable the books of accounts maintained in regular course of business are presumed to be correct, complete and reliable, and books results cannot be disturbed without any material defect section 30 of Evidence Act. 2. Invalid Trading Addition of ₹ 341396/- by Increasing GP Rate from 7.24% to 8% Arbitrarily:- That on the facts and in the circumstances of the case Ld. CIT(A) has grossly erred in law and facts in confirming trading addition of ₹ 341396/- by increasing GP rate from 7.24% to 8% without any material facts ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 50000/- out of expenses are without justification. 1. That on the facts and in the circumstances of the case Ld. CIT(A) has grossly erred in law and facts in confirming not issuing proper and valid show cause notice before making addition / disallowance. 2. That on the facts and in the circumstances of the case Ld. CIT(A) has grossly erred in law and facts in confirming in charging interest u/s 234B ₹ 56985/- interest u/s 234C ₹ 6679/- and interest u/s 234D ₹ 6. 4. Ground No. 1 (a) (b) of the assessee s appeal were not pressed at the time of hearing, therefore, the same stands dismissed as not pressed. 5. Ground No. 2 of the appeal is against confirming the trading addition of ₹ 3,41,396/- made o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hout appreciating the fact that its trading results were progressive and therefore the trading addition made by the AO deserves to be deleted. ( iii) I have duly considered the submissions of the appellant, assessment order and the material placed on record. It is noted from the details furnished by the appellant during the appellate proceedings that it has maintained quantitative details of HDPE/PP bags only. It has not filed the quantitative details of the raw material consumed for manufacturing of bags. It is also noted from the material placed on record that the appellant has purchased HDPE/PP Fabric in Kilograms whereas the details of finished products were maintained in numbers and the appellant has not provided any method by w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the same is hereby sustained. 6. The ld AR of the assessee has submitted that the gross profit for the year under consideration was better than the earlier two preceding years. He has drawn the attention of the Bench towards the chart wherein the G.P. for the A.Y. 2013-14 i.e. the year under consideration was 7.24% and the G.P. rate for the A.Y. 2012-13 was 7.20% and for the A.Y. 2011-12, it was 7.19%. He has also drawn the attention of the Bench towards the NP rate, which was also better than in comparison to earlier years. The NP rate for the year under consideration was 2.77% instead of 2.75% in the immediate preceding and 2.70% in the A.Y. 2011-12. He has submitted that the assessee s book results were better than the earlier year ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 33610 3283103 1257833 7.24% 2.77% The Hon ble Rajasthan High Court in various decisions have held that past history of the assessee is the best guide to accept/reject the book result of the assessee. The Assessing Officer had not brought on record any positive evidence to enhance the gross profit for making additions. The G.P. is better than earlier year. The assessee is purchasing raw material in kilograms and the output is in pieces. Thus, there is no possible way to make coordination between input and output. In such a situation, the gross profit is the proper way to arrive at comparative book results. Therefore, considering all the facts and circumstances, the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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