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TMI Blog2015 (12) TMI 701X X X X Extracts X X X X X X X X Extracts X X X X ..... eals; therefore, these were heard together and are being disposed of by this consolidated order for the sake of convenience. ITA No. 2515/Ahd/2012 : AY 2008-09 2. In this appeal, the Revenue has raised following grounds of appeal:- 1) The Ld. Commissioner of Income-Tax (Appeals)-XV, Ahmedabad has erred in law on facts in deleting the addition of Rs. 10,45,770/- made on account of estimation of Gross Profit. 2) The Ld. Commissioner of Income-Tax (Appeals)-XV, Ahmedabad has erred in law on facts in deleting the disallowance of Rs. 6,95,799/- made on account of transportation charges, i.e. Noor & Jakat. 3) On the facts and in the circumstances of the case, the Ld. Commissioner of Income-Tax (Appeals)-XV, Ahmedabad ought to have uphel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... de before the higher authority for reasonability of addition. 6.1. As mentioned in the chart, the purchase/sale of Charcoal, DOC, Fire-wood, GNS Powder, White-coal etc, are comparatively of small sales item and gross profit is also small or G.P. is higher or lower makes no difference in over all quantum of gross profit. Therefore, the same are not considered worth for detailed discussion. Thereafter, there remains only two major items viz. Lignite and Steam Coal. The Item of Lignite is being mainly purchased from GMDC, a Govt. of Gujarat concern. So far another major item of steam-coal, the assessee purchases these from open market in bulk from importer and sales it to his customers in truck load. The gross profit in this item is disclos ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion for rejection of books as assessee's books suffer from the defects and sundry creditors list represent fictitious credit. There is steep fall in the gross profit ratio in the trading of steam cock as the profit has fell down from 17.47% in preceding year to 10.83% in current year. After considering contentions of the assessee, totality of facts and directions issued u/s.144A of the IT Act, the gross profit at the rate of 12% is estimated which is considered both fair and reasonable and accordingly this would be considered for addition for possible leakage of gross profit on sale of steam cock. As such, the addition on account of low gross profit is worked out as under: 12% GP on sales of steam cock Rs. 93389929 Rs.1,12,06, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was to be paid as done in the past as same set of facts prevails. Accordingly, an addition of Rs. 6,95,799/- is made to the total income of the assessee on this count." 2.3. Matter was carried before the First Appellate Authority wherein various contentions were raised on behalf of the assessee and having considered the same, the CIT(A) deleted the addition of Rs. 10,45,770/- made on account of estimation of Gross Profit and the disallowance of Rs. 6,95,799/- made on account of transportation charges i.e. Noor & Jakat. The same has been opposed on behalf of the Revenue inter alia submitted that the CIT(A) erred in deleting the addition of the addition of Rs. 10,45,770/- made on account of estimation of Gross Profit and also against the de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o-ordinate Bench has held as under: "2.2.5 In view of the above discussion, we are of the considered opinion that in the facts of the present case, even the rejection of books of account is not proper and even if rejection of the books of accounts is accepted, the addition made by the A.O. on account of G.P. addition and disallowance made by the A.O. on account of bogus freight liability cannot be sustained. We, therefore, allow all these three grounds of the assessee." After considering all the facts and evidences produced during appellant proceeding, we have considered view that the rejection of books of account u/s.145(2) was not justified on the basis of defects pointed out by the A.O. Further, GP addition also is not required due to su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of details were called for and moreover, no actual addition was made by the A.O. in the computation of income in page 13 of the assessment order and it has not brought on record to show that the mistake was rectified u/s 154 within the time allowed under that section. Even if this has been rectified then also we feel that such ad-hoc disallowance without pointing out as to what was the details called for which were not submitted, is not justified. We, therefore, delete this disallowance. This ground is allowed." 4. Nothing contrary was brought to our knowledge on behalf of Revenue. Facts being similar, following the same reasoning as mentioned in the aforesaid case for AYs 2005-06 to 2007-08 as discussed above, we are not inclined to inte ..... X X X X Extracts X X X X X X X X Extracts X X X X
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