TMI Blog2012 (10) TMI 989X X X X Extracts X X X X X X X X Extracts X X X X ..... ooks of account. In the absence of the same, assessee’s accurate income cannot be deduced. Therefore, we find no infirmity in the order of the Ld. CIT(A), who has rightly upheld the invocation of provisions of section 145(3) of the Act by the A.O. As regards the estimation of income, there is no dispute to the fact that the assessee has submitted the explanation with regard to the increase in the cost of production i.e. increase of the cost of cloth, cost of yarn and expenses as is evident at para 5 of the letter dated 20.4.2009 submitted by the assessee. The said explanation has not been taken in right spirit by the AO as well as by the ld. CIT(A). If this explanation of the assessee is taken into account, we are of the view that no add ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ax Act. 3. That the observation made are against facts and are based on surmises and conjectures and do not afford any legal justification to the estimate made for G.P. Rate. The details explanations filed, submissions, made and the evidence placed on record have not been properly considered and judicially interpreted. 4. That the estimate made for G.P. rate is unjust, unlawful and unreasonable and highly excessive and is not supported by any material on record. 5. That the proceedings u/s 271(1)(c) have been wrongly initiated and interest u/s 234B/234C have also been wrongly charged and wrongly computed and are also excessive. 3. The brief facts of the case are that the assessee is the proprietor of M/s. Shree Ganpati Fashio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he paper book pages 23 24 and also from the explanation given vide letters dated 20.4.2009 24.4.2009. The assessee had maintained purchase/sales register and stock is recorded in term of quantity. Stock tally has been made on that basis. Though quality-wise register is not maintained and the assessee had submitted the calculation for the basis of closing stock of the embroidery cloth. The assesse had submitted before the A.O. letter dated 20.4.2009 that during the year, the assessee had made the sales of 233086 Mtrs as compared to 145055 Mtrs in the immediate preceding year and there was increase in percentage of the same by 60.61% and in amount the increase of 44.3% in sales. It was explained in the said letter dated 20.04.2009 that in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r books of account. In the absence of the same, assessee s accurate income cannot be deduced. Therefore, we find no infirmity in the order of the Ld. CIT(A), who has rightly upheld the invocation of provisions of section 145(3) of the Act by the A.O. 7.1. As regards the estimation of income, there is no dispute to the fact that the assessee has submitted the explanation with regard to the increase in the cost of production i.e. increase of the cost of cloth, cost of yarn and expenses as is evident at para 5 of the letter dated 20.4.2009 submitted by the assessee. The said explanation has not been taken in right spirit by the AO as well as by the ld. CIT(A). If this explanation of the assessee is taken into account, we are of the view tha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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