Contact us   Feedback   Annual Subscription   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

2015 (10) TMI 586 - ITAT JAIPUR

2015 (10) TMI 586 - ITAT JAIPUR - TMI - 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 regis .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

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 SHRI T. R. MEENA, A. M. This is an appeal by the assessee emanating from the order of ld. CIT(A)-I, Jaipur d .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

account under section 145(3) is not pressed 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 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

o 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 ass .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

allowed the appeal partially by observing 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 bo .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

is the best guide for estimation of g.p. 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 th .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ous factors enumerated by the AO as under :- (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 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

t to be considered is the experience of 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 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 



|| 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