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2016 (7) TMI 667 - AT - Income TaxTrading addition - G.P. rate application - Held that:- Whatever defects pointed out by the AO are sufficient to reject the book results as purchases as well as payments of expenses were made in cash which has not been controverted by the AR. Therefore, we upheld the rejection of books of account u/s 145(3) of the IT Act. The Co-ordinate Bench has considered the assessee’s cases from A.Y.2006-07 to 2008-09 for identical additions made by the AO by rejecting the books of accounts. It is general that GP rate cannot be constrained. The assessee has given cogent evidence for decline of the GP rate which has been accepted partly by the ld. CIT(A). The sales are constitute 56.70% of total sales. The reasons given by the assessee for decline of GP are verifiable from the bill which shows that grey stone purchase price has increased from 11.54% to 31.21% whereas brown stone price increased from 5.88% to 17.65% compared to preceding year. However, sale price had not increased proportionately as evident by the AR of the assessee which has not been controverted by the ld. AR. - Decided against revenue
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