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2014 (3) TMI 586 - HC - Income TaxRejection of books of accounts – Violation of section 145 of the Act – Low G.P. Ratio – Held that:- The GP addition was made by the AO after examining all the aspects very carefully, but the CIT(A) has deleted the addition on simple basis that since there is decrease in average sale price, fall in GP is explained – thus, there is no reasonable basis in the order of the CIT(A) for deleting the addition. The issue is based on evidence on record and thus purely factual in nature - It is not the case where the books of accounts are rejected, merely on the basis of deviation in GP rate as recorded by the Assessing Officer and reiterated by the Tribunal - Not only there was a considerable deviation in the GP rate, the consumption of various raw materials also shown unusual pattern of deviation compared to the previous years - the assessee gave no explanation for extraordinary deviation in consumption of certain raw materials – as such no question of law arises for consideration – Decided against Assessee.
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