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TMI Blog2019 (11) TMI 324X X X X Extracts X X X X X X X X Extracts X X X X ..... (10+79+10+12.69+9.46+3.65), therefore it would be met the end of justice if the GP rate is 9.35% is applied to post-survey sales amounting to ₹ 3,25,72,550/- which work out to ₹ 30,32,504/-. Therefore, the income of the assessee to this extent is sustained which inter-alia includes the returned of income of ₹ 4,20,413/- and including the disclosure made during survey. In view of this total income of the assessee determining at ₹ 30,32,504/- as against ₹ 33,65,089/- determined by the CIT(A). In view of this fact, these above grounds of appeal are partly allowed in favour of the assessee. - I.T.A. No.1207/AHD/2013 - - - Dated:- 3-10-2019 - Shri Amarjit Singh, Judicial Member And Shri O.P. Meena, Accountant Member For the Assessee : Shri Hiren Vepari CA For the Revenue : Shri Mayank Pandey Sr. DR ORDER PER O P MEENA, AM: 1. This appeal filed by the assessee is directed against the order of the ld. Commissioner of Income Tax (Appeals)-1, Surat [in short the ld. CIT(A) ] dated 05.02.2013 for pertaining to the assessment year 2009-10. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t reserve profit was estimated was ₹ 65,41,670/- of the turn over of ₹ 6,54,16,705/-. The AO also made addition on account of unexplained cash deposit of ₹ 11,05,000/- admitted during survey and unexplained stock of ₹ 18,95,000/- admitted during the course of survey. 5. Being aggrieved, the assessee carried the matter before ld. CIT(A). During the course of appellate proceedings, the matter was remanded to the AO for his comments on remand s report. The AO vide remand report dated 21.09.2012 submitted that the assessee has submitted confirmation of fourteen purchase parties and no adverse influence is drawn. However, the then AO never specifically ask for production of stock register day to day and stock register. With regard to non-production of bills/vouchers of purchases/expenses, the AO observed in his remand report that the appellant produced bills/ vouchers vide questionnaire dated 05.09.2011 and 29.06.2011 respectively asked to produce, however the same was not produced. On the contrary, the appellant stated in its letter dated 06.07.2011 that sales register, purchase register, cash book, bank book, and ledger account ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 12.69% only that at ₹ 41,33,457/- against the disclosed GP of ₹ 11,88,781/-. Accordingly, balance defence of ₹ 29,44,676/- was upheld as against the returned income of ₹ 4,20,413/-.However, the CIT(A) observed that the AO has made addition of ₹ 65,41,670/- being profit and addition of ₹ 11,05,000/- and ₹ 18,95,000/- making the total figure of ₹ 95,41,670/-. The CIT(A) observed that there is these additions have not been made twice as discussed supra. These grounds of appeal are dismissed. However, there will be no separate addition for these amounts while giving appeal effect for the reason that the computation will now start from returned income of ₹ 4,20,413/- and GP addition of ₹ 29,44,676/-, though the CIT(A) has allowed for the GP addition. 6. Being aggrieved, the assessee has filed an appeal before this Tribunal. The ld. counsel for the assessee has submitted that total unaccounted income admitted during the survey on account of excess stock of ₹ 18.94 lacs and cash deposits of ₹ 11.05 lacs have duly entered in the books of accounts which have been refle ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion that discrepancies would have continued in post-search period, particularly when AO could not find any defect in books of account relevant to post-search period. Therefore, the rejection of books of account by the AO for post-search period was not warranted. The ld. counsel further placing reliance in the case of CIT vs. Bindals Apparels [2011] 332 ITR 410 (DELHI), wherein it was observed that non-maintenance of day-to-day stock register is not a reason to reject books as no adverse comment regarding books produced before AO, therefore the lower gross profit rate in period subsequent to survey due to huge discounts on merchandise, hence, gross profit rate disclosed by assessee reasonable. 8. Per contra, the ld. Departmental Representative (DR) supported the order of the ld. CIT(A) and submitted that the CIT(A) has duly observed that no day-to-day stock register and the production register are maintained, therefore the assessee obliged to produce the stock register has mentioned by the CIT(A) in Para8.5 of his order, hence the ld. CIT(A) was justified to applying the GP rate as there was drastic fall in GP rate. 9. We have hear ..... X X X X Extracts X X X X X X X X Extracts X X X X
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