TMI Blog2009 (1) TMI 854X X X X Extracts X X X X X X X X Extracts X X X X ..... eight or measurement and no stock register was maintained and by considering the comparable case of Anil Marbles (P) Ltd., the GP rate 32.12 per cent taken and made addition? - HELD THAT:- It is not the law that books of account of assessee having been rejected as unreliable u/s.145(3), the sales returned by the assessee must necessarily be rejected and such sales should be estimated at higher figure than returned by the assessee. Even after, the rejection of the books of account the AO is under obligation to determine as to whether the sales as returned by the assessee should be accepted or higher sales should be estimated. The estimated sales must be determined fairly on the basis of relevant material on record. As noticed by CIT(A) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 60A of the IT Act, 1961 (for short 'the Act of 1961' hereinafter) is directed against order dt. 5th Oct., 2005 passed by the Income-tax Appellate Tribunal, Jodhpur Bench, Jodhpur (for short 'the Tribunal' hereinafter) in ITA No. 554/Jd/1999 and ITA No. 531/Jd/1999 for the asst. yr. 1996-97, whereby the aforesaid appeals preferred have been partly allowed and the order dt. 26th Aug., 1999 passed by the Commissioner of the Income-tax (Appeals) [in short 'the CIT(A)' hereinafter], reducing the estimated sales, has been confirmed and the GP rate determined by the CIT(A) as 25 per cent has been enhanced to 25.95 per cent. 2. The relevant facts in nutshell are that the respondent assessee is engaged in manufacturing of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of establishment of business, manpower utilized, availability of raw material etc. After considering the facts and circumstances of the case, the CIT(A) opined that there is a general feature of under billing in the line of business wherein the assessee is engaged and such feature cannot be ruled out in the case of the assessee as well. Accordingly, the CIT(A) while determining the estimated sales at ₹ 55,00,000 including all receipts held that it will be reasonable to apply GP rate of 25 per cent on estimated sales. 4. Aggrieved by the aforesaid order passed by the learned CIT(A), Revenue as well as the respondent assessee preferred appeals. The cross-objections were filed by the respondent assessee in the appeal filed by the Rev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7. Per contra, the learned counsel appearing on behalf of the respondent assessee, while relying upon the judgment of this Court in the matter of CIT vs. AKJ Granites (P) Ltd. (2007) 212 CTR (Raj) 25: (2008) 301 ITR 298(Raj), submitted that the best judgment assessment itself is based on estimate and cannot be scaled at exactitude, therefore, on the facts and in the circumstances of the case, no substantial question of law arises in the matter and the order passed by the learned Tribunal confirming the order passed by the CIT(A) with the modification in regard to the GP rate to be applied, does not warrant interference by this Court. 8. We have considered the rival submissions and perused the impugned order and other material available ..... X X X X Extracts X X X X X X X X Extracts X X X X
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