TMI Blog2012 (11) TMI 473X X X X Extracts X X X X X X X X Extracts X X X X ..... he business. A businessman cannot be compelled to maximise its profits. CIT (A) has also given a finding that the case of the Revenue is that it is of a sale to sister concern at a price which is less than its market value. The Revenue has not brought any specific material on record to show a particular sale price. No deeming provision of the nature of section 40A(2)(b) for sales transaction. The Revenue has also not been able to controvert the findings of the CIT (A) or rebut his observations. Thus no reason to interfere in the order of CIT (A) - in favour of assessee. - I.T. A. No. 1577/AHD/2010 - - - Dated:- 5-10-2012 - SHRI G.C. GUPTA SHRI ANIL CHATURVEDI, JJ. Appellant by : Mr. Rahul kumar Sr. D.R. Respondent by : Mr. R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bserved that in lieu of the transfer of stock, the assessee was allotted shares of the sister concern. The A.O. therefore concluded that the transfer of stock at book value was in fact the sales made to sister concern. He accordingly applied the G.P. rate of the assessee for the year of 14.76% on the stock transfer of Rs.1,48,36,961/- and calculated G.P. of Rs.21,89,935/- and added the same to the income of the assessee. Aggrieved by the action of the A.O. the assessee carried the matter before CIT (A). Before CIT (A) interalia it was submitted that the stock had become unsaleable. CIT (A) deleted the addition made by A.O. by holding as under:- 2.3. I have considered the submission made by the appellant and the observation of the A.O ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f CIT (A), the Revenue is now in appeal before us. 6. Before us, the Ld. D.R. submitted that the assessee should have sold the stock at cost plus profit margin and not at cost. He thus, relied on the order of the A.O. On the other hand the Ld. A.R. submitted that it manufactured only one variety of cloth known as polyester x polyester. This particular quality had lost fancy of the customers and therefore there was accumulation of stock. The stock that was transferred to the sister concern was being carried in the books of the assessee since long. The assessee had transferred to its sister concern the stock which it was carrying forward from earlier years. He also placed on record the summarised quantitative details of production and sales ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
