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2017 (8) TMI 1584 - RAJASTHAN HIGH COURTRejection of books of accounts - analogy for calculating GP rate which has been applied for previous year 5.24% - HELD THAT:- Assessee has not maintained the stock register qualitywise as well as weightwise. However, the stock register is maintained in terms of the bags only from which it is not possible to workout the stock weightwise and quantiywise. No details of Churi, Cattlefeed, Khal etc. were furnished by the assessee in support of his claim. The assessee explained to the AO that valuation is made on qualitywise of goods whereas he does not maintain qualitywise record of the goods traded. In the absence of qualitative details, commodities purchases/sales and its quantitative details in weight, it is not possible for the AO to verify the value of the closing stock. Taking into consideration our own recent view, the average of five years GP is to be taken into consideration which comes to 3.91%. In that view of the matter, taking average of previous five years GP as 3.91%, the appeals stand allowed. For the assessment year 2006-07, the addition sustained by the ITAT is set aside however for the assessment year 2005-06, the addition is sustained.
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