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2013 (10) TMI 828 - AT - Income TaxRejection of books of accounts u/s 145(3) of the Income Tax Act – Computation of G.P. rate on estimation basis - The appellant had shown GP rate at 12.52% in the year under consideration as compared to 11.76% in preceding year, which was 10.7% in A.Y. 04-05. The turnover of the assessee has gone up from Rs. 15.3 Crore to Rs. 22.79 core in the year under consideration compared to preceding year. The appellant had shown increase in the turnover as well as in GP – Held that:- The comparable case cited by the A.O. are having lesser turnover and also were dealing in the different items i.e. assessee is importing and exporting and trading of the diamond as well as the gold jewellery. The case cited by the A.O. are not comparable further he only made the ground for rejection of book result i.e. not maintaining qualitative details of the opening stock, purchase sale and closing stock. As various Co-ordinate Bench had decided that this is not a sufficient ground for rejecting the book result. The A.O. has to bring on record other evidences which support the rejection of book result, which has not been found place in the assessment order - Further, in case of M/s. Dhami Brothers vs. ACIT [2010 (8) TMI 817 - ITAT AHMEDABAD], that there is no requirement of law to maintain qualitative details of each peace of diamond for computing the income. - Decided against the revenue.
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