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TMI Blog2024 (10) TMI 692X X X X Extracts X X X X X X X X Extracts X X X X ..... THAT:- CIT(A) has followed the decisions of non-jurisdictional High Courts on this issue. Here we want to make it clear that in the absence of an order of the jurisdictional High Court, relevant orders on the same issue of even non-jurisdictional High Court are also accepted. It is a normal practice and thus there is nothing wrong in it. We have also considered the arguments of the Counsel of the Assessee and the findings given by the ld. CIT(A) in his order. We find that it is a matter on record that regarding allegation of bogus sales, nothing has been brought on record by the AO - AO has accepted all the purchases along with opening and closing stock of the Assessee. Then on what basis sales out of such stock / purchases may be rejected without any proof brought on record. Thus, the above findings given by the ld. CIT(A) on this issue in his order is very much justified and needs no interference. - Shri A.D. Jain, Vice President And Dr Krinwant Sahay, Accountant Member For the Assessee : Shri Sudhir Sehgal, Advocate For the Revenue : Smt. Kusum Bansal, CIT DR ORDER PER DR. KRINWANT SAHAY, A.M.: The appeal in this cases has been filed by the Revenue against the order dated 12.0 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... :- 5.2 I have carefully examined the facts of the case and the submissions filed by the appellant have been taken due cognizance of. The additions in the case of the appellant have been made on two issues. The addition on the first issue amounting to Rs. 1,58,607/- has been made on application of excess GP rate of 0.25% after rejecting the books of accounts by giving various, reasons. In second issue, the additions amounting to Rs. 6,89,67,208/- was made u/s 69A of the Act by treating the cash deposited during the demonetization period as unexplained money. 5.3. As regards to the Ist ground of appeal, I have carefully perused the assessment order passed u/s 143(3) of the Act dated 29/12/2019. In the assessment order the AO has narrated various facts for the rejection of the books of accounts under section 145(3) of the Act. The observation and discrepancies in nutshell as observed by the AO are as under: 1. Cash sale of October and November 2016 shows sudden high as compared to preceding month and again drop to almost NIL in the month of December 2016. 2. The Appellant has not uploaded cash book of Kolkata branch for whole of the year. 3. There is a huge difference in closing cash ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g addition of Rs 1,58,607/-. It is pertinent to mention here that while estimating the GP the AO himself has observed in para 11 as under: 11 One method of estimating of income of the assessee in the case of rejection of accounts is calculation of GP on estimated basis of the last three assessment years including the current AY. i.e. 2017-18 of the assessee company. But it is observed from the efilling portal that assessee has not filed its return of income before the A.Y. 2016-17. Assessment Year GP. AY 2017-18 3.18% A.Y. 2016-17 3.27% Since the GP of current year is less than the previous year. The GP on estimated basis is increased by 0.25%. The detailed calculation is mentioned below: - The taxable income at normal rates after increasing the GP to 3.43% comes to be Rs. 58,74,117/ - [addition of amount of Rs. 1,58,607/-to the taxable income at normal rates. 5.6. The AO has without any base or comparable case simply increases the GP by 0.25% which in my opinion is not correct. At the most GP should have been estimated at 3.27% which is logical and same as of earlier year. It is therefore held that the GP percentage to be adopted at 3.27% instead of 3.43%. Further, the AO has redu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... om a source which has already been taxed and which would amount to double taxation. B. No addition u/s 69A of Income Tax Act, 1961 can be made as where the books of accounts have been rejected by the AO u/s 145 [3] of the Act and again relying on the same books of account, addition under section 69A of the Act is made. 5.9 During the appellate proceedings the appellant has placed reliance on various decisions rendered by the various Hon'ble courts few of them are as under: I. In the case of Pr. CIT Vs. Akshit kumar in ITA No. 348 of 2019 [2021] 124 taxmann.com 123 (Delhi), it was held by the Delhi High Court that Where opening stock was accepted in scrutiny assessment, revenue could not treat sales made by assessee out of such opening stock as income from unexplained sources. II. In the case of Pr. CIT Vs. Dilip Kumar Swami in appeal No 19 of 2018, [2019] 106 taxmann.com 59 (Rajasthan), it was held by the Rajasthan High Court that Where Commissioner passed a revisional order making addition to assessee's income under section 68 in respect of amount deposited in bank account, in view of fact that said amount represented sale consideration of goods in support of which assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s reproduced as under: - 1. The facts, in brief, are that the assessee is into the business of manufacturing, as well as, trading of knitted cloth, mink Blanket, manufacturing of T-Shirts and job work of Dyeing and the return of income had been filed on the basis of audited books of accounts and the case was selected under scrutiny on account of abnormal cash deposited during demonetization period in the regular bank accounts of the assessee, maintained with the 'Axis Bank' and 'HDFC Bank' as reflected in the balance sheet of the assessee. 2. Explaining the background of the case, Counsel of the Assessee argued that the Assessing Officer during the course of assessment proceedings raised the query with regard to the cash deposited in the regular bank accounts of the assessee, maintained with 'Axis Bank' and 'HDFC Bank' during assessment proceedings and the assessee explained that the cash deposits in the bank accounts were as per regular audited books of accounts and they are out of the cash sale proceeds of cloth/Blanket at the retail outlets of the assessee at Ludhiana and Kolkata besides recoveries from debtors and the stand of the assessee have b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of accounts and all such invoices have been uploaded to the Assessing Officer regarding the sales made at Kokkata Branch. Regarding non-response against certain notices, issued u/s 133(6) by certain parties from whom purchases have been made, all such transactions have been made through banking channels and the same cannot be held against the assessee if such parties do not respond to the notices of the Assessing Officer as per the judgment of WFC Project Pvt. Ltd. reported in 133 TTJ 167 of Delhi Bench of the ITAT and Continental Carbon (India) Ltd. in ITA No. 526905270/Del/2010, ITAT, Delhi Bench. 6. It was also argued that the case of the assessee regarding the deposit of cash is duly covered by the Judgement of Jurisdictional Bench of the ITAT Chandigarh Bench in the case of 'Charu Aggarwal and Others' reported in 96 ITR (Trib) 0066, copy placed at pages 44 to 109 of the Judgement Set, judgment of Delhi High Court in the case of Akshit Kumar, reported in 197 DTR 121 and Akriti Jain in ITA No. 481/Chd/2023, datd 14.06.2024, copy placed at pages 229 to 238 of the 'Judgement Set' and various other judgements of difference Benches of the ITAT and of Delhi High Cou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ealization of sale proceeds in cash to tax will amount to double taxation and the same is clearly unsustainable in law and cannot be upheld. In view of the same, we find the explanation of the assessee as genuine and reasonable duly supported by the documentation and books of accounts and the addition so made by the AO and confirmed by the Ld. CIT(A) is hereby directed to be deleted. 7. The Ld. Counsel also referred to the order of the Ld. CIT(A), where reliance has been placed on certain judgment of Delhi High Court and of Rajasthan High Court and the Ld. CIT(A) has allowed the appeal of the assessee on merits, on similar judgements and it was argued that order of CIT(A) be accepted.. 8. Regarding the appeal of the assessee bearing ITA No.9/Chd/2024, it has been argued that the Assessing Officer while framing the assessment had rejected the books of accounts u/s 145(3) and applied the Gross Profit rate of 3.43% against the profit rate of 3.18% as declared by the assessee and thus, there is addition of excess G.P. rate of 0.25%.I 9. The CIT(A) has discussed the grounds for rejection of books of accounts in para 5.3, at page 3 4 of the order and it was argued by the Ld. Counsel of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ade by it. It is submitted that the impugned cash deposited by the assessee during the year is out of the verified sources. Furthermore, it is also submitted here that the sales made by the assessee has not been debated by the AO during the course of the assessment proceedings, which is very much clear from the assessment order as the AO has not negated or given any adverse remarks on the documents as mentioned in para (i) above. Therefore, your goodself's kind attention is again invited towards the fact that this modus operandi of depositing cash is not only being followed in the relevant assessment year but the same has been done by the assessee in the past years also. iii). Therefore, from the above it is clear that the cash sales has been made by the assessee in the normal course of his business and that the same modus operandi has been followed by the assessee from the earlier assessment years. It does no: matter whether the cash deposited in the earlier years were higher or lower the important fact to consider here is that the cash sales are being regularly made by the assessee and the same is part and parcel of the assessee's normal business. Thus, rejecting the cash ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as sales by the assessee than making addition of the same under section 68/69 of the act is prohibited, as the same shall amount to double taxation. Reliance is being placed on the following judgment of Hon'ble Gujarat High Court in the case of President Industries reported in 258 ITR 654, wherein, it was held as under:- The amount of sales by itself cannot represent the income of the assessee who has not disclosed the sales. The sales only represent the price received by the seller of the goods for the acquisition of which it has already incurred the cost. It is the realisation of excess over the cost incurred that only forms part of the profit included in the consideration of sales. Therefore, unless there is a finding to the effect that the investment by way of incurring cost in acquiring goods which have been sold has been made by the assessee and that has also not been disclosed, the question whether entire sum of undisclosed sales proceeds can be treated as income, answers by itself in the negative. The same judgment have been relied upon by the Ahmedabad Bench of the ITAT in the case of Shree Sanand Textiles Industries Ltd., in ITA No. 995/Ahd/2014 and CO No. 167/Ahd/20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cash in hand as filed by the assessee during the assessment proceedings and during the investigation proceedings. The details of the cash in hand given during the assessment proceedings is enclosed in the paper book at pages and also at page 25 of the assessment order and the details of the cash in hand given before the DDIT(lnv.)-1, is reproduced at page 26-27 of the assessment order and from a perusal of the same it is clear that there is no difference in such cash in hand and it seems the Ld. AO has merely made up this allegation. Therefore, the allegation made by the Ld. AO is incorrect. ix) Allegation- No details of the buyers on the cash bills of knitted cloth and mink blankets The Assessing Officer further given his finding that there is no name/complete addresses, TIN, VAT, Telephone or GR on the bills. With regard to the same it is submitted that as clarified earlier the assessee has been making retail sales of goods from the past many years and depositing the proceeds of the said sales in the bank accounts. It is submitted that the assessee is not duty bound to obtain the names and addresses of every client who buys goods on retail basis and moreover, the department cann ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e whole case from the very basic and important point that the sales bills has actually been issued by the assessee and the sales have been booked in the books of accounts and the taxes have been paid on the same. These allegations are merely the modus operandi with which the assessee operates its business merely to differentiate the different types of sales being made and there is nothing wrong with that. Therefore, the allegation of the AO is complete baseless and deserves to be rejected. x) Allegation regarding non-payment of loans, increase in CC Limits and cash withdrawal from the bank accounts The Assessing Officer found that the assessee has been keeping huge cash in hand and not making payment to the unsecured loans lenders, secured car loans, CC limits. Similarly, the AO has also alleged that the assessee has increased the amount of CC limit and secured loans even when the assessee had cash in hand. Moreover, the AO has also alleged that the assessee has made self-withdrawals even when it had enough cash in hand. With regard to the same it is submitted that the cash in hand has been generated out of the regular business sales and it is very much rational and common that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... advanced as interest free loan to its sister concern is not relevant. What is relevant is whether the amount was advanced as a measure of commercial expediency and not from the point of whether the amount was advanced for earning profits.... Therefore, the allegation of the AO with regard to the repayment of loans is incorrect and the books of accounts cannot be rejected on the basis of the same. xiii). Allegation- Non maintenance of Stock register The Assessing Officer has further given finding that the assessee has not given item wise/month wise details of stocks and neither the assessee the valuation of opening stock and closing stock. The AO also alleged that the assessee has not maintained Stock register. With regard to the same it is submitted that the assessee has filed various details in respect of the stock which are sufficient enough considering the scale and nature of the business of the assessee. The details filed by the assessee during the assessment proceedings in respect of the stock are as under:- a. The assessee vide reply dated 24.07.2019 has duly filed the Quantity wise details of the raw materials depicting the name of the item, opening stock, purchases made, c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... same and therefore, it is not feasible to maintain daily stock register. However, the assessee has filed various details as detailed below which is a sufficient compliance in respect of the valuation of the stock. xvi). Notwithstanding the above explanation, it is submitted that merely non-maintenance of daily stock register cannot lead to rejection of books of accounts moreover, when sufficient details of the stock have been filed by the assessee during the course of the assessment proceedings and moreover, the said details have been accepted by the Ld. AO. Reliance in this regard is placed on the following judgments:- a). CIT vs. Poonam Rani 326 ITR 223 (Del HC) b). CIT vs. Jas Jack Elegance Exports 324 ITR 95 (Del HC) c) Ashoke Refractories (P) Ltd. v. CIT 279 ITR 457 (Cal HC) d) Neeraj jain vs. ITO 33 CCH 436 (Del Trib) e). Teletronics Dealing Systems (P) Ltd. vs. Additional CIT 31 CCH 037 (Mum Trib) f). ACIT vs. Ramesh Kumar Siwach in ITA No. 3269/Der/2013 g) [2016] 73 taxmann.com 195 (Gujarat) HIGH COURT OF GUJARAT Jaytick Intermediates (P.) Ltd. v. Assistant Commissioner of Income-tax h) [2020] 117 taxmann.com 802 (Chandigarh - Trib.U[2020] 183 IN THE ITAT CHANDIGARH BENCH & ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n even able to give any adverse remarks against the said document or against the said explanation filed by the assessee. The AO in a perfunctory manner mad the addition by merely alleging that the assessee has not maintain bills regarding the said purchases. The AO has even reproduced the chart depicting the date-wise amount of purchases of such consumables purchased by the assessee and the AO has not even been able to find single defect in such details. Therefore, the AO has merely created some self-made assumptions allegations in making such allegation and rejecting the books of accounts on the basis of this reason. xx) Allegation regarding the office at Kolkata In this allegation of the AO, he stated that the assessee has not been able to clarify its stand regarding the sales made in Kolkata Branch. With regard to the same, it is submitted that the assessee has very well clarified its stand regarding the cash sales being made at Kolkata Branch. The counsel of the assessee has already submitted that the assessee proposed to open the Branch at Kolkata and due to which, they took a premises on rent there and opened a bank account there mentioning the due details of the Branch. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation, it is clarified that the office at Kolkata is not an actual branch of the assessee and rather it is an office being run by another person and the assessee is merely selling the goods at the said mentioned office and realizing the proceeds of the said sales as soon as the person appointed sells these goods and realize the proceeds either through banking channel or via cash. Either way, the sale made by the assessee to the Kolkata Branch is deposited to the bank account of the assessee maintained at Kolkata and the details of which has been given by the assessee during the course of assessment proceedings and against which the AO has not drawn any adverse inference. xxii). The AO also alleged that in order to carry out the said transactions the person Mr. Ashish Kumar Kundu should not be employee of the assesses as no employee can bear the loss. With regard to the same, it is submitted that this allegation of the AO is totally misplaced and irrelevant as under which logical reasons or logical circumstances, would an employee miss an opportunity of running the operation of whole branch when there is an opportunity of earning huge amount of profits there and that too without emp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee has specifically mentioned the month wise cash received from the Kolkata Office and now the same is also enclosed in the paper book. Further along with the same, the assessee has also filed month wise sales made at Kolkata and a clear bifurcation between the cash sales and other sales has also been given and same is also enclosed in the paper book. xxv). It is also relevant to add here that the assessee has filed month wise details of the cash in hand at Kolkata Branch and from a collective reading of the said details and the detail of the cash realized from debtors at Kolkata Branch, it is clear that the person appointed there has been regularly depositing the cash in the bank maintained at Kolkata which depicts that the receipt of cash and depositing the same in the bank account is a regular modus operandi and moreover, the same has been accepted even by the Investigation Wing itself. The assessee has also filed the copy of account of the Ludhiana Branch, in the books of Kolkata Office. The said copy of account reflects the sales made by the assessee to the Kolkata Office and against which either the assessee has received cash or payment has been received via banking channel. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ayment has been made via banking channels to the said transporter. The AO alleged that the transporter has issued only one bill amounting to Rs. 73,200 against many bilties and with regard to the same it is submitted that neither the details in the form of GR Number, truck numbers of the transporter and nor the details of the payment made to the transporter have been debated and moreover, it does not matter if the bill of the entire transportation made by the transporter have been issued at one time and moreover, when the transporter itself has confirmed the same. Further the AO also alleged that the assessee has not maintained the copy of account of Khamkhya Transport, however, with regard to the same it is submitted that the said goods sent through the said transport was to pay basis and no payment has been paid by the assessee itself and the same is evident from the copies of the bilties filed during the assessment proceedings wherein Kolkata has been mentioned against To Pay , therefore, when no payment has been paid by the assessee then no ledger would exist in the books of the assessee. It is submitted that the AO has merely done cherry picking and that too has been done inco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncorrect. Reliance is placed on Hon'ble Supreme Court's judgment in the case of CIT Vs. Orissa Corporation (P) Ltd. (1986) 159 ITR 78 (SC) for the proposition that if the AO has issued summons u/s 133(6) it is his duty to bring the process to a logical conclusion and non-response by such person cannot be held against the assessee. On similar lines reliance is also p aced on the following judgments: - (a) YFC Projects (P) Ltd. Vs. DCIT (Del) 134 TTJ 167 (b) ACIT vs. Han Singar Gutkha (P) Ltd. (2008) 9 DTR 604(Trib.) (c) Continental Carbon India Ltd. Income-tax Officer. ITA Nos. 5269. 5270 5271/Del/2010. ITAT Delhi. xxx). Further, it is also submitted that the parties namely M/s Upvan Syntex, M/s Payal Fashions and M/s Gaurang Knit Fab Corporation has filed their confirmations, even then the AO alleged that they have not filed the their ITR along with the confirmation and that confirmation without ITR has not legal value. With regard to the same it is submitted that time and time again the AO has made such allegations which has no legal or factual standing and which is not even relevant to the case of the assessee. The confirmation filed by the above parties are more than suf ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ibunal bases its findings on suspicions, conjectures or surmises or it acts on improper rejection of material and relevant evidence, or partly on evidence or partly on suspicions, conjectures or surmises and if it does anything of the sort, its findings, even though on questions of fact, will be liable to be set aside by the Court . xxxii). The Hon'ble Supreme Court also stated in the case of Umacharan Shaw 8t Bros. v. CIT (1959) [1959] 37 ITR 271 (SC) held that suspicion however strong, cannot take the place of evidence. xxxiii). The Hon'ble Supreme Court way back in the case of Lalchand Bhagat Ambica Ram v. CIT [1959] 37 ITR 288 (SC) held that assessment could not be based on background of suspicion and in absence of any evidence to support the same. The Hon'ble Court held: The mere possibility of the appellant earning considerable amounts in the year under consideration was a pure conjecture on the part of the ITO and the fact that the appellant indulged in speculation (in Kalai account) could not legitimately lead to the inference that the profit in a single transaction or in a chain of transactions could exceed the amounts, involved in the high denomination notes,- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sue. We have also gone through the findings of the ld. CIT(A) on this issue in his order and we find that the findings given by the ld. CIT(A) on this issue is very logical and thus justified hence it needs no interference. Accordingly, Revenue s appeal on this Ground is dismissed. 13. Appeal on Ground No. 2 filed by the Revenue is against the deletion of Rs. 6,89,67,208/-. The ld. CIT(A) in his order has given his findings as under:- 5.7. As regards the addition of Rs. 6,89,67,208/-I n respect of cash deposit by the Appellant, the reasons given by the AO is predominantly cash sales made by the Appellant at various occasions of the amount less than Rs. 2 Lakhs where the Appellant doesn't maintain the name and address of the purchaser. Thereby observing that the Assessee must have done bogus sales to increase turnover. Further, the doubts as to Kolkata operations and cash deposited at Kolkata led the AO to observe that the unaccounted money of M/s Balaji Processors find somewhere in Kolkata which the Assessee has deposited during the demonetization period. 5.8 While making the above observations, the AO failed It appreciate that all the purchases of the Appellant are properly vo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ount represented sale consideration of goods in support of which assessee had produced statement of bank account, copies of bills issued to purchasers as also books of account showing entries of deposits made in bank, impugned revision at order was to be set aside. In view of the above and the fact that the total sales as per VAT return have been adopted as basis for estimating GP, no separate addition under section 69A of the Act in respect of cash deposited during the demonetization period which is represented by sales is required. In view of the facts quoted above, the addition made of Rs. 6,89,67,208/- u/s 69A of the Act is hereby deleted and accordingly ground 3 is allowed. 14. We have considered the arguments of the ld. DR who has argued against the said deletion on the basis that the ld. CIT(A) has followed the decisions of non-jurisdictional High Courts on this issue. Here we want to make it clear that in the absence of an order of the jurisdictional High Court, relevant orders on the same issue of even non-jurisdictional High Court are also accepted. It is a normal practice and thus there is nothing wrong in it. We have also considered the arguments of the Counsel of the A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be filed on or before - 12.10.2023 iii). The appeal was filed on - 06.03.2024 Delay in filing the appeal /C.O. - 145 days. 2. It is submitted that we have a full time Accountant namely Sh. Raman Changotra, who had been looking after our Accounts and legal matters viz-a-viz Income Tax. 3. That we had received the memo of appeal by post on 13.09.2023 and the same was handed over to our Accountant, Sh. Raman Changotra for taking an appropriate action in the month of September 2023. 4. That however, later on when the date was fixed for hearing on 11.03.2024, he was asked to engage Sh. Sudhir Sehgal as our counsel and when he approached the counsel concerned, he (the counsel) enquired from him, whether any cross objections had been filed or not and then it came to know that the cross objections had to be filed within 30 days and, accordingly, we then advised him to take immediate step to file the Cross objections/ appeal immediately, which was filed by our counsel, Sh. Sudhir Sehgal on 06.03.2024. We told him to be careful in future and this default has occurred only on account of the above said reason, it is, therefore, very humbly requested that delay of 145 days may, please, be condo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessment order passed u/s 143(3) of the Act dated 29/12/2019. In the assessment order the AO has narrated various facts for the rejection of the books of accounts under section 145(3) of the Act. The observation and discrepancies in nutshell as observed by the AO are as under: 1. Cash sale of October and November 2016 shows sudden high as compared to preceding month and again drop to almost NIL in the month of December 2016. 2. The Appellant has not uploaded cash book of Kolkata branch for whole of the year. 3. There is a huge difference in closing cash in hand which was submitted to the investigation wing vis a vis submitted during the assessment proceedings. 4. There are no name/PAN/complete address details of the persons with whom the appellant had cash sale transactions. 5 Majority of the bills in the month of October and November are generally of amount of Rs. 1,0.000/- to Rs. 1,95,000/-. All the sales-bills are below Rs. 2,00,000/- so as to obviate the mandator provision of quoting PAN above Rs. 2,00,000/-. 6 From the perusal of the cash book and ledger account of the sales was observed that the appellant is maintaining four series if bills, which are introduced at differ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ey had submitted the detailed reply on this issue before the ld. CIT(A) but in his order, the ld. CIT(A) has although acknowledged that detailed reply was submitted but in summarily manner has upheld the rejection of books of account and in para 5.5 of the order, the CIT(A) has given his findings rejecting the GP ratio adopted at the rate of 3.43% by the Assessing Officer and bringing in down at the rate of 3.27%. On this issue, a detailed discussion has already been done in the former part of this Order in the appeal filed by the Department in ITA No.499/Chd/2023. However, at the cost of repetition, it is to again brought on record the findings of the ld. CIT(A) on this issue, which is as under: - 5.6. The AO has without any base or comparable case simply increases the GP by 0.25% which in my opinion is not correct. At the most GP should have been estimated at 3.27% which is logical and same as of earlier year. It is therefore held that the GP percentage to be adopted at 3.27% instead of 3.43%. Further, the AO has reduced the sales by cash deposit during demonetization period, which is not correct. After the rejection of books, the GP should have been estimated at 3.27% on the tot ..... X X X X Extracts X X X X X X X X Extracts X X X X
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