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TMI Blog2019 (9) TMI 546X X X X Extracts X X X X X X X X Extracts X X X X ..... ignificantly gone up to ₹ 2.09 crores as against 76.46 lacs in the preceding year. When the turnover goes up substantially it is quite possible that the GP rate may come down. As mentioned earlier an assessee not maintaining any stock register cannot be equated with an assessee maintaining stock register giving full details. Therefore, deleting the entire trading addition as argued by assessee cannot be accepted - addition of ₹ 50,000/- on estimate basis for possible leakage of revenue due to non maintenance of stock records will meet the ends of justice. The grounds raised by the assessee are accordingly partly allowed. - ITA No.660/Del/2019 - - - Dated:- 2-8-2019 - SH. R. K. PANDA, ACCOUNTANT MEMBER Appellant by Sh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the GP rate of 10% the Assessing Officer made addition of ₹ 8,92,653/-to the total income of the assessee. 4. In appeal the Ld.CIT(A) sustained the addition so made by the Assessing Officer. 5. Aggrieved with such order of the CIT(A) the assessee is in appeal before the Tribunal by raising following grounds of appeal :- 1. The Learned A. O. as well as CIT(A) have erred on facts as well as in law in sustaining the trading addition of ₹ 8,92,653/- even though no defects in books indicated, books are audited ones. 2. It is wrongly stated there is a history of G. P. Rate of 10% in this case, which is contradictory to the facts given in this Order. 3. It is wrong that there is no stock register, quantitative tal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... licable. 8. So far as the decision of the Hon ble Delhi High Court in the case of M/s. Chadha Automobiles India reported in 13 taxman.com 152 is concerned, he submitted that in that case also the Assessing Officer found various discrepancies in the books of accounts produced and, therefore, he rejected the book results and went for estimating the profit. However, in the instant case as mentioned earlier, there is no such other defect except non maintenance of stock record. Therefore, both the decisions relied on by Ld. CIT(A) while sustaining the addition is not justified. 9. The Ld. DR on other hand heavily relied on the order of the CIT(A). He submitted that the Ld. CIT(A) has given categorical finding that stock register is indispe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt of time since quantity is given in purchase and sales register. In my opinion an assessee who is not maintaining any stock register cannot be equated with an assessee who maintenances a stock register on day today basis giving quantitative details of items traded. Further in the instant case I find the GP rate has fallen although the turnover has significantly gone up to ₹ 2.09 crores as against 76.46 lacs in the preceding year. When the turnover goes up substantially it is quite possible that the GP rate may come down. However, as mentioned earlier an assessee not maintaining any stock register cannot be equated with an assessee maintaining stock register giving full details. Therefore, deleting the entire trading addition as argu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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