TMI Blog2003 (6) TMI 166X X X X Extracts X X X X X X X X Extracts X X X X ..... . 3. That the CIT(A) has erred in concurring with the ITO in not accepting the income declared at Rs. 1,24,180 by the assessee and has further erred in assessing the same at Rs. 2,23,976. The order is most arbitrary and he has erred in not accepting the contention of the assessee because: (i) The learned CIT(A) has erred in concurring with the ITO while arbitrarily estimating the sales at Rs. 1,55,00,000 as against sales of Rs. 1,50,32,336 declared by the assessee-firm, and further erred in concurring with the ITO in arbitrarily applying a GP rate of 2.7 per cent as against 2.44 per cent declared by the assessee-firm and henceforth upholding the addition of Rs. 96,000. (ii) The learned CIT(A) has erred in concurring with the ITO in no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... varieties of whisky and it was not possible to prepare such a list. It was also stated that the sales were recorded on daily basis as the amount of sales is deposited and recording is made accordingly in the cash book. Further, it was claimed that the GP rate shown was comparable with other assessees engaged in the same line of business. The AO found that the assessee did not have details of daily sales particularly when the employees of the assessee were looking after five vends at difference places. The AO took the view that it is not understandable as to why these employees were not preparing sale vouchers of each day. According to the AO, it is a general practice in this line of business that on each day sale vouchers for total sales d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and produced at the time of assessment or appeal were not complete and a proper verification of the purchase and sale transactions could not be made. The learned CIT(A) further pointed out that no document was produced before him to support the view that GP rate of 2.144 per cent declared was adequate. According to him, the GP rate was low as the retailer would make much higher profit. The learned CIT(A) also observed that there was nothing wrong with the turnover of the assessee's trade and after achieving healthy turnover the GP rate should also be reasonable. 6.1 After considering the entire facts of the present case, the learned CIT(A) held that the AO was justified in rejecting the books of account and making the addition of Rs. 96, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l, the learned Departmental Representative, strongly supported the orders of the authorities below. 9. I have carefully considered the rival submissions and have also perused the orders of the authorities below. It is an admitted position that the assessee had furnished audited accounts along with the return of income. The auditors have not given any adverse comments in the report. Similarly, the assessee was dealing in exciseable items and had maintained statutory registers prescribed by the excise authorities. The AO has not pointed out any material defects in the books of account maintained by the assessee. Even the excise authorities have accepted the books maintained by the assessee. It seems that the AO has made the addition merely ..... X X X X Extracts X X X X X X X X Extracts X X X X
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