TMI Blog2015 (10) TMI 586X X X X Extracts X X X X X X X X Extracts X X X X ..... from item to item. As relying on case of Malani Ramjivan Jagannath vs. ACIT (2006 (10) TMI 145 - RAJASTHAN HIGH COURT) decision on fall in GP and non-maintenance of stock register support the assessee’s case. Therefore, we reverse the order of ld. CIT (A). It is not necessary that where books were rejected certain addition is required to be made to the income of the 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t maintain stock register. The GP compared to preceding year had gone down. In absence of stock details, it was not possible to verify the trading result declared by 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 assessee are self serving documents and no logical inference can be drawn from the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 submitted that the turnover during the year is more than double. When turnover is increased then it is bound to lead to certain downfall in the GP. The results are reasonable, fair, adequate and is, in fact, much better in comparison to past year. All the purchases were vouched, detailed and verifiable. Simil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... endent 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 register is not possible in this line of business. The closing stock was valued at estimated cost price as in the past. There is no change in the method or basis of valuation. The ld. A/R also referred various decisions of High Court as well as ITAT wherein fall in GP and non-maintenance of stock register was held to be not of significance for rejecting the books of account. Therefore, he requested to delete the addition confirmed by ld. CIT (A). 5.1. At the outset, the ld. D/R supported the order of ld. CIT (A). 6. We have heard ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
