TMI Blog2015 (9) TMI 502X X X X Extracts X X X X X X X X Extracts X X X X ..... ifiable in the absence of stock register and so the GP rate was not verifiable and accordingly restricted the GP rate to 9% and upheld the rejection of books of account. The Tribunal while upholding the orders of the Assessing Officer as well as the CIT(A) qua rejection of books of account, estimated the GP rate at 8% instead of 9% as ordered by the CIT(A). The assessee was trading in the items of well established companies and is also a wholesaler C&F agent. In order to check veracity of the gross profit disclosed by the assessee, maintenance of stock register by the assessee was essential. The Assessing Officer had compared the gross profit rate of the assessee viz-a-viz other similar concerns. No satisfactory explanation had been furn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed under Section 145(3) of the Act framed the assessment at 55,14,510/- by making an addition of 41,09,728/-. Feeling aggrieved, the assessee filed an appeal before the Commissioner of Income Tax (Appeals) [for brevity the CIT(A) ]. The CIT(A) vide order dated 1.3.2013 (Annexure A-2) while partly allowing the appeal of the assessee restricted the GP rate to 9% and upheld the rejection of books of account. Still dissatisfied, the assessee filed an appeal before the Tribunal who vide order dated 31.12.2014 (Annexure A-3) upheld the ground of rejection of books of account and directing the Assessing Officer to apply GP rate of 8% instead of 9% as ordered by the CIT(A). Hence, the present appeal by the assessee. 3. Learned counsel for the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The assessee was trading in the items of well established companies and is also a wholesaler C F agent. In order to check veracity of the gross profit disclosed by the assessee, maintenance of stock register by the assessee was essential. The Assessing Officer had compared the gross profit rate of the assessee viz-a-viz other similar concerns. No satisfactory explanation had been furnished by the assessee for not maintaining the stock register. The rejection of books of account of the assessee by the Assessing Officer was, thus, justified. The relevant findings recorded by the Tribunal read as under:- 7. On consideration of the rival submissions, we are of the view rejection of the books of account is justified in the matter. The Ass ..... X X X X Extracts X X X X X X X X Extracts X X X X
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