TMI Blog2013 (7) TMI 41X X X X Extracts X X X X X X X X Extracts X X X X ..... counter verifications and other enquiries should be made – Assessing Officer not rejected books of account of assesse, therefore, estimation of gross profit by applying GP rate of 50% not justified – Appeal dismissed. - ITA No.4183/Del/2012 - - - Dated:- 28-6-2013 - Shri G. D. Agrawal And Shri Chandra Mohan Garg,JJ. For the Appellant : Shri Tarun Seem, Sr. DR. For the Respondent : Sh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... counter verification and other enquiries. 3. That the learned CIT(A) has erred in law and on facts in ignoring the fact that the assessee has showing N.P. Rate 2.42% on the sale of 42,54,805/- in A.Y. 2009-10 as against shown of 4.07% in A.Y. 2008-09 on the sale of 25,18,367/-. 4. Therefore, the order of CIT(A) cancelled or set-aside and the order of the A.O. may be restored." 3. The facts ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sideration of all the facts on record and rival submissions as contained in assessment order and in appellant's submission my observations/conclusions are as under:- It is clear from the assessment order itself that the A.O. has made addition purely on adhoc basis without making any verification or without giving any cogent basis. The A.O. has not appreciated that last year the assessee had decl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f above, the addition made of Rs.18,69,895/- can not be sustained in the eyes of law. Same is deleted." 4. After considering the arguments of both the sides and the facts of the case, we do not find any infirmity in the order of learned CIT(A). The Assessing Officer has mentioned that the profit on sale of paintings is ranging between 100% to 1000%. However, on what basis he made such observatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y the gross profit rate. If the GP rate disclosed by the assessee is low in the opinion of the Assessing Officer, that entitles the Assessing Officer to probe deep into the accounts of the assessee but, that by itself, is not sufficient for rejection of books of account under Section 145(3) and application of higher GP rate. Evidently, in this case, the Assessing Officer has not rejected the books ..... X X X X Extracts X X X X X X X X Extracts X X X X
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