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2015 (10) TMI 586 - AT - Income TaxRejection of books of accounts u/s 145(3) - assesee was dealing in gems and jewellery - CIT(A) applying GP rate of 20.00% as against 19.20% declared by the assessee - Held that:- The assesee was dealing in gems and jewellery including gold jewellery. The 24 carat gold is converted into 22 carat, 20 carat, 18 carat and 16 carat. Similarly, valuation of diamond jewellery depends on clarity, size of diamond, colour. It is difficult to maintain the stock register in this line of business of the assessee. The number of diamond pieces is also differs on size to size and accordingly valuation of diamond jewellery varies from item to item. As relying on case of Malani Ramjivan Jagannath vs. ACIT (2006 (10) TMI 145 - RAJASTHAN HIGH COURT) decision on fall in GP and non-maintenance of stock register support the assessee’s case. Therefore, we reverse the order of ld. CIT (A). It is not necessary that where books were rejected certain addition is required to be made to the income of the assessee as held in case of Gotton Lime Khaniz Udyog, (2001 (7) TMI 19 - RAJASTHAN High Court). - Decided in favour of assessee.
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