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TMI Blog2018 (9) TMI 1307X X X X Extracts X X X X X X X X Extracts X X X X ..... that the appeals filed by the revenue are below the monetary limit as prescribed by the latest CBDT circular No.3 of 2018 dated 11.7.2018. 3. Ld. D.R. conceded this fact. Therefore, the appeals in ITA Nos.249 & 250/Ind/2017 of the revenue where tax effect is lower than the limit prescribed by the CBDT circular No.3 of 2018 dated 11.7.2018 are dismissed as not maintainable. 4. Now coming to the assessee's appeal in ITA No.145/Ind/2017 pertaining to the assessment year 2010- 11, the assessee has raised following grounds of appeal: 1. That on the facts and in the circumstances of the case the Ld. CIT(A) erred in approving the rejection of the books of account of the appellant by invoking the provision of section 145(3) of the Income Tax A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o have accepted the book result declared by the assessee. Ld. Counsel submitted that merely because the assessee could not inadvertently included the expenses related to freight and cartage in the closing stock, this should not have been sufficient for rejection of books of accounts. The A.O. has not given any finding in respect of the other information declared by the assessee. 6. On the contrary, Ld. D.R. opposed the submissions and submitted that the law is very clear. The A.O. is empowered to invoke provisions of section 145(3) of the Act in the event that on the basis of the accounts, the correct figure of the profit cannot be deduced. In support of this, Ld. D.R. relied upon the judgement of the Hon'ble Supreme Court in the case ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at the appellant has shown gross profit percentage of 7.48% for the year under consideration as against 9.59% for A.Y. 2009-10 and 7.79% for A.Y. 2012-13. As has already been noted in para above the appellant has submitted a working of valuation of Closing stock incorporating the impact of freight, cartage etc. not considered in the valuation. As per the working the stock is undervalued to the extent of Rs. 1323134/- which works out to 0.87% of the total turnover and gross receipts shown by the appellant. From the details on record, it is seen that the gross profit percentage of the appellant has shown a variation from 9.07% in A.Y. 2007-08, 9.35% in A.Y. 2008-09, 9.59% in A.Y. 2009-10 and 7.48% in the year under consideration i.e. A.Y. 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on the basis of past history and the impact of not taking into account the expenses related to freight and cartage. This ground of appeal of the assessee is also dismissed. 12. Now coming to the assessee's appeal in ITA No.146/Ind/2017 for the A.Y. 2012-13, the assessee has raised identical grounds in this year also, which reads as under: 1. That on the facts and in the circumstances of the case the Ld. CIT(A) erred in maintaining the rejection of the books of account of the appellant by invoking the provision of section 145(3) of the Income Tax Act. 2. That on the facts and in the circumstances of the case the Ld. CIT(A) erred in maintaining addition of Rs. 18,03,514/- without properly appreciating the facts of the case and submissio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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