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2017 (2) TMI 1083 - AT - Income TaxTrading addition - Held that:- We find that during the assessment proceedings, the assessee had not provided quantitative details of opening and closing stock and purchase and sales. From the nature of activity of the assessee, we find that maintenance of day to day stock register is quite difficult in this case. Though the quantitative details of opening and closing stock, purchase and sales help the Assessing Officer to determine the true income but in the absence of such records the best way out to determine the income of assessee is to compare the results with the earlier years as well as with the persons dealing in similar items of trade. The Assessing Officer in this case has compared the G.P rate declared by M/s Jagat Singh & Sons, which were not confronted to assessee. The Ld. AR has further submitted that a trader situated next door to him had declared a lower G.P rate which has not been considered by the Assessing Officer. In view of the above facts and circumstances, we deem it appropriate to remit the issue back to the Assessing Officer who should confront the trading results of M/s Jagat Singh and Sons to the assessee and should also consider the trading results of M/s S H Traders, and after examination of the trading results of these persons should calculate the income by applying the appropriate rate. Needless to say that assessee will be provided sufficient opportunity of being heard. - Decided in favour of assessee for statistical purposes.
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