2014 (12) TMI 1418

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..... he assessee is directed against the order of ld. CIT(A), Bilaspur dated 30.11.2010 relating to A.Y. 2006-07. 2. The only effective ground raised by the assessee in this appeal reads as under :- "That the learned A.O. grossly erred in rejecting the audited report u/s 44AB and further erred in estimating the gross profit u/s 144 without considering the facts in its right perspective but merely pr .....

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..... n of income under section 143(1) of the Income Tax Act, 1961 (in short 'the Act'), the assessment was taken up for scrutiny and was completed under section 143(3) of the Act on 24.11.2008 computing total income at Rs. 15,48,153/-. During the course of assessment proceedings, the A.O. required the assessee to produce books of account. However, the assessee failed to produce the books of account sta .....

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..... he A.O. relied only on the G.P. disclosed in earlier years. The G.P. varies from year to year depending on several factors, such as local market conditions, fluctuations in rates etc. Though reference to earlier years results are also necessary, it alone is not sufficient to adopt higher G.P. for the relevant Asst. year without conducting certain enquiries, regarding the local market conditions an .....

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..... omparable case. - As held in the case of Madanlal vs. ITO (2006) 9 SOT 1 (Uro) Jodhpur, if the Appellant is able to explain, the magical figure of past year can not be applied in this year. It is more judicious to consider all these factors and in that eventuality, even past history may not have much relevance." 5. It is observed that the A.O. estimated the G.P. at 12.34% on sales of dolomite a .....

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..... and circumstances of the present case. Keeping in view the peculiar facts of the present case and nature of the business carried out by the assessee, we think it proper to restrict the addition to Rs. 1,50,000/- on both counts. Thus, the assessee gets a relief of Rs. 2,32,023/-. 6. In the result, appeal is allowed partly as indicated above. 7. Order pronounced in the open Court on 17.12.2014.

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