Subscription   Feedback   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Articles Highlights TMI Notes SMS News Newsletters Calendar Imp. Links Database Experts Contact us More....
Extracts
Home List
← Previous Next →

M/s. Divine Ornaments Pvt. Ltd. Versus The Income-tax Officer, Ward-2 (2) , Jaipur.

2015 (10) TMI 586 - ITAT JAIPUR

Rejection of books of accounts u/s 145(3) - assesee was dealing in gems and jewellery - CIT(A) applying GP rate of 20.00% as against 19.20% declared by the assessee - Held that:- The assesee was dealing in gems and jewellery including gold jewellery. The 24 carat gold is converted into 22 carat, 20 carat, 18 carat and 16 carat. Similarly, valuation of diamond jewellery depends on clarity, size of diamond, colour. It is difficult to maintain the stock register in this line of business of the asse .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

e assessee as held in case of Gotton Lime Khaniz Udyog, (2001 (7) TMI 19 - RAJASTHAN High Court). - Decided in favour of assessee. - ITA No. 297/JP/2013 - Dated:- 11-8-2015 - SHRI R.P. TOLANI AND SHRI T.R. MEENA, JJ. For The Assessee : Shri Sidharth Ranka and Shri Muzaffar Iqbal (Advocates) For The Revenue : Shri Puroshottam Kashyap (JCIT) ORDER PER SHRI T. R. MEENA, A. M. This is an appeal by the assessee emanating from the order of ld. CIT(A)-I, Jaipur dated 28.01.2013 for the assessment year .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

sed by the assessee. Therefore, the same is dismissed as not pressed. 3. Ground No. 1.1 is against confirming the addition by applying GP rate at 20% as against 19.20% declared by the assessee and confirming the addition of ₹ 2,09,854/- by ld. CIT (A). The assessee is in the business of manufacturing and trading of gold and semi-precious jewellery. Return of income was filed by the assessee on 30.09.2008 at NIL income. The case was scrutinized under section 143(3) of the IT Act. The assess .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

the assessee. Therefore, AO gave reasonable opportunity of being heard to the assessee which was availed by the assessee and submitted written submission, which has been reproduced by the AO at pages 2 to 5 of his order. After considering the assessee s reply, the AO held that to decide the correct income from gems and jewellery business it is necessary to verify the goods consumed and stocks maintained by the assessee, which was not available with the assessee. Whatever details submitted by the .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ng as under :- 4.3. I have carefully perused the order of the AO and the submissions of the AR. There are four factors to determine the correct profit of any assessee, the authenticity of the purchases and sales and verifiability of the closing and opening stock. In this particular case, the AO has given a categorical finding that the items or their value in the closing stock could not be verified and on the basis of this information he has rejected the books of accounts of the assessee by invok .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

rate once books of accounts have been rejected. In the case of the assessee, it is seen that while the turnover has increased by 109.63% the g.p. rate has declined by 64.13%. It is a generally accepted principle that the g.p. rate in the case of manufacturer declines with the increase of turnover. Given the exponential increase in turnover the g.p. rate is estimated at 20% resulting in a confirmation of the trading addition of ₹ 2,09,854/- 5. Now the assessee is before us. The ld. A/R sub .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

r :- (a) The vision, knowledge, experience of the management and its personnel with long term planning in mind, etc. It has already been highlighted that this is the second year of operations of the assessee s business. (b) The product the assessee is dealing in is a fashion product which is susceptible to change very fast. Thus to conduct the business with expectations of earning more and more margins may lead the consumers away from the assessee. (c) The product which the assessee deals in is .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

the management in the same field. As submitted earlier it was for the first time that the management of the assessee entered into jewellery business. This is only second year of operation. Past experience was only in the field of export & import of gem-stones. (f) The margins are also dependent on particular periods demand and supply position. The assessee is dealing in manufacturing of gold, diamond and kundan jewellery studded with precious and semi precious stones. Maintenance of stock re .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

what is new what is new
  ↓     bird's eye view     ↓  


|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version