9911796707
TMI Blog2012 (4) TMI 826X X X X Extracts X X X X X X X X Extracts X X X X ..... of Rs. 3,94,337/- made by Assessing Officer. 3. Briefly stated, the facts of the case are that the assessee firm is engaged in the business of Arahat of food grains. During the assessment year under consideration, the assessee has sold 2832.10 qtl. of wheat for Rs. 24,19,899/- against which a gross profit of Rs. 4,462/- was earned which comes to 0.18%, whereas gross profit on sale of wheat during the period relevant to assessment year 2007-08 was 16.48%. While framing the assessment, the Assessing Officer has applied the gross profit @ 16.48% as earned in assessment year 2007-08 without rejecting the books of account. The Assessing Officer made the addition of Rs. 3,94,337/- after giving the benefit of gross profit shown by the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r under consideration. According to Ld. Counsel for the assessee the above observation of the Assessing Officer is absolutely wrong because the quantitative details were furnished Along with return of income and was duly reflected in the Trading Account. As regards the low gross profit shown in this year, Shri Rajiv Goyal, Ld. Counsel for the assessee submitted that price of food grains keeps on changing on day to day basis based on national / international events and trade policy of government. He further submitted that gross profit earned depends upon the timing of purchase and sales. 6. Shri Rajiv Goyal, Ld. Counsel for the assessee also submitted that in the instant case, the Assessing Officer has not rejected the books of account u/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... und for making the addition. It is well settled law that merely low profit may provoke an enquiry, but that by itself without more cannot justify an addition to the profits shown. Considering the entire facts and circumstances of the present case and also the submissions made by Shri Rajiv Goyal, Ld. Counsel for the assessee, we are of the view that there was no justification in making the addition merely on the ground of low profit that too without rejecting the books of account regularly maintained by the assessee. No specific discrepancy or defect in the books of account of the assessee has been pointed out by the Assessing Officer. In such circumstances, there was no justification in making the addition. Accordingly, we delete the addit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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