TMI Blog2013 (7) TMI 82X X X X Extracts X X X X X X X X Extracts X X X X ..... that:- As the assessee could not produce the vouchers in respect of various expenses claimed by it AO was justified in rejecting the book results. As Gross Profit rate disclosed by other concerns engaged in the similar line of business was in the range of 28.92% to 31.22% & before the tax authorities, the assessee has stated that the sale of inferior quality items was high vis-a-vis the high quality items & the profit margin in respect of inferior quality item is usually low, since the assessee could not substantiate the said explanation the rate of gross profit is required to be estimated on the basis of other external information - the issue would meet the ends of justice, if the rate of gross profit in the instant case is estimated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... line of business was in the range of 28.92% to 31.22%. Further, in one of the cases, the Assessing Officer had estimated the G.P. at 34% in the assessment order passed u/s. 143(3) of the Act. Accordingly, the Assessing Officer estimated the rate of G.P at 32% of the turnover reported by the assessee and added the difference in the Gross profit to the total income returned by the assessee. 5. The assessee challenged the assessment order by filing the appeal before the Ld. CIT(A). Since there was delay in filing the said appeal, the assessee filed a petition seeking condonation of delay. However, the Ld. CIT(A) refused to condone the delay on the ground that the reason cited by the assessee was not convincing to him. However, the Ld. CIT(A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... considered by the Hon'ble High Court of Madras in the case of Vijayeswari Textiles Ltd. vs. CIT (256 ITR 560). The Hon'ble Madras High Court, in the above said case, noticed that the Tribunal refused to condone the delay and proceeded to dispose of the appeal on merits also. Under these set of facts, the Hon'ble High Court of Madras held that the delay is deemed to have been condoned. The observations made by the Hon'ble High Court in this regard are extracted below for the sake of convenience:- "Matters relating to condonation of delay are indeed discretionary and are normally left to the Tribunal and this court will not ordinarily interfere with the discretion. In this case, as we have already pointed out, the Tribunal did not stop wit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at 34% in the assessment order passed u/s. 143(3) of the Act. Accordingly, the Assessing Officer preferred to adopt the G.P. ratio of 32% in the instant case. 10. The Ld. Counsel for the assessee contended that the books of accounts produced before the Assessing Officer was not rejected by him and hence, the book results should have been accepted. However, the fact remains that the assessee could not produce the vouchers in respect of various expenses claimed by it. Under these circumstances, in our view, the Assessing Officer was justified in rejecting the book results. Now coming to the estimate of Gross Profit rate of 32% adopted by the AO, we notice that the Gross Profit rate disclosed by other concerns engaged in the similar line of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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