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TMI Blog2019 (8) TMI 467X X X X Extracts X X X X X X X X Extracts X X X X ..... ,47,120/- made on account of suppression of profit by recording that no cogent material has been deduced from audited accounts to show suppression of profit, thereby completely ignoring the authoritative findings of the Assessing Officer and excluding the entire sales to its sister concern from turnover for calculating gross profit and passing an order in favour of the assessee on erroneous finding of facts giving rise to a substantial question of law?" 3. The respondent - assessee is an engineering company and had filed return of income for the assessment year 2008- 09. The Assessing Officer made additions inter alia on the ground of lower GP rate in the present year. The CIT(A) granted partial relief being calling for remand report. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... proceedings with respect to this contention of the assessee. The submissions made before the AO with this regards are placed in paper book page 18-22. It was also explained by the assessee that the sale price to the sister concern was lower because excise duty and sales tax(against H form) was not included in the sale price for manufactured products as the products were procured by the sister concern which were meant for exports. This contention of the assessee was accepted by the AO in remand report proceedings . It was also accepted by the AO in remand report proceedings that the AO in the assessment proceedings while computing the gross profit margin has not included the other manufacturing costs such as labour, power and fuel , carri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssment year cannot be a ground of additions to the income of the assessee unless the Revenue points out particular defect or discrepancies in the books of accounts maintained by the assessee. The assessee is maintaining books of accounts which are audited. The assessee has duly met all the adverse reservations of the AO in remand report/appellate proceedings before learned CIT(A) as set out above. No cogent material has been brought on record to prove that the assessee has manipulated its accounts to suppress profits. Therefore, there are no reasons or justification in law to reject the explanation given by the assessee to support its contentions. Mere fall in the gross profit ratio , in the absence of any cogent reasons could not be a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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