9911796707
TMI Blog2018 (1) TMI 540X X X X Extracts X X X X X X X X Extracts X X X X ..... e G.P. rate declared by the assessee at 15.36%, there is no dispute that after rejection of books of account, the income of the assessee is required to be estimated on best judgment of the Assessing Officer. Thus, it is settled proposition of law on the point that while estimating the income after rejecting the books of account, the average G.P. of the past years, which has attained the finality or accepted by the revenue would be a proper and reasonable basis for adopting the G.P. for the current year. Accordingly, we set aside this issue to the record of the Assessing Officer for computing the average G.P. of past years to be adopted for the year under consideration to estimate the income of the assessee. Addition on account of interest c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oks of account without pointing any discrepancy or defect in the books of account except that some registers were not maintained as it was neither possible nor needed as details are available in the books of account. 2. That the Td. CIT (Appeals) has erred in law and on facts in upholding Gross Profit Rate of 17% as against 15.36% declared even though the turnover has been accepted and ignoring our submissions including that turnover has increased by three times and predecessor Ld CIT(A) applied G.P. Rate of 14% for AY 2009- 10. 3. That the Ld. CIT(Appeals) has erred in law and on facts in confirming the addition of ₹ 15,27,073 on the ground that interest charged from family members at 6% while interest paid is 12% and has not c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ook result of the assessee. The Assessing Officer then estimated the income of the assessee by applying G.P. rate of 17% on the turnover. 3. On appeal, the ld. CIT(A) has upheld the action of the Assessing Officer of rejection of books of account as well as the G.P. rate @ 17% applied by the Assessing Officer. 4. Before us, the ld AR of the assessee has submitted that the entire sale of the assessee is export and therefore there is no scope of under valuation of closing stock by the assessee. Further the assessee is getting the job work done through outsourcing to the parties. He has further submitted that for the A.Y. 2006-07, this Tribunal has considered an identical issue and directed the Assessing Officer to apply G.P. rate @ 7.50%. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessing Officer @ 17% as against the G.P. rate declared by the assessee at 15.36%, there is no dispute that after rejection of books of account, the income of the assessee is required to be estimated on best judgment of the Assessing Officer. However, even after rejection of books of account and the income is estimated, it may not necessarily result any addition to the income declared by the assessee if the G.P. declared by the assessee for the year under consideration is in line with the average G.P. rate for the past year which has been accepted by the Assessing Officer or has attained the finality. Thus, it is settled proposition of law on the point that while estimating the income after rejecting the books of account, the average G.P. o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent from the computation sheet of these members showing income from business and profession. However, all these contentions of the assessee were not duly considered by the authorities below but were rejected summarily. He has referred to advance given to one Rahul Bhandari and submitted that the interest received from the said person was @ 12% and not @ 6% and therefore no disallowance is called for in this respect. The ld AR has further submitted that when the recovery of loan amount itself is doubtful from these persons due to their poor financial condition then the interest charged from these persons is based on the concept of real income. 9. On the other hand, the ld DR has relied on the orders of the authorities below and submitted th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f assessee for the A.Y. 2012-13, the assessee has raised following grounds of appeal. "1. That the Ld. CIT (Appeals) has erred in law and facts in not holding that assessment order is invalid in law. 2. That the Ld. CIT (Appeals) has erred in law and facts in upholding the rejection of books of account due to non maintenance of stock and fall in G.P. ratio without considering the fact that maintenance of stock register was not feasible, all the components of trading account are verifiable and fall in G.P. Rate explained as there were major sales to Export parties including sale of 85% around to one party. 3. That the Ld. CIT (Appeals) has erred in law and facts not considering the contents on merits in respect of trading additions o ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
