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2021 (1) TMI 904 - AT - Income TaxDifference in the opening stock - CIT(A) allowing the appeal of the assessee on the ground that the discrepancies pointed out by the AO are only typographical errors - Rejection of books of accounts - estimation of income - GP rate determination - HELD THAT:- All the discrepancies pointed out were only typographical errors and do not have any impact in any manner whatsoever on the computation of total income of the assessee for the year under consideration. There is mistake in reflecting the quantity figures in the tax audit report for A.Y.2011-12. However, right quantity details have been duly reflected together with the values thereon for the A.Y.2012-13 and there is absolutely no difference in value between the closing stock as on 31/03/2011 and opening stock as on 01/04/2011. Hence, there is absolutely no impact in the computation of profits as per books and computation of total income as per the Act for the year under consideration. Hence, there cannot be any grievance for the revenue at all in the instant case. AO grossly erred in not crediting the export benefits in the recasted trading account prepared while working out the gross loss. Assessee had earned only gross profit during the year under consideration. It is a fact that assessee had made only export sales during the year and no local sales were made. Export benefits needs to be considered as trading receipt for the purpose of working out the gross profit of the assessee for the year under consideration. We find the GP disclosed by the assessee for the A.Y.2012-13 was 2.92% and GP of A.Y.2011-12 was 3.02%. Hence, there is absolutely not much variation in the gross profit disclosed by the assessee also This is not a fit case for rejection of books of accounts u/s.145(3) of the Act by the ld. AO. We hold that the ld. CIT(A) had duly appreciated all the contentions of the assessee and rightly granted relief to the assessee in the instant case - Decided against revenue.
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