TMI Blog2015 (5) TMI 998X X X X Extracts X X X X X X X X Extracts X X X X ..... TA No. 1042/Ahd/2011 - - - Dated:- 15-5-2015 - Shri G.D. Agrawal, Vice President and Shri Rajpal Yadav, Judicial Member For the Appellant : Shri Vimlendu Verma, CIT-D.R. For the Respondent : Shri Gaurav Nahata, A.R. ORDER PER : RAJPAL YADAV, JUDICIAL MEMBER:- Revenue is in appeal before us against the order of Ld. CIT(A)-XIV, Ahmedabad dated 25th January, 2011 passed for assessment year 2008- 09. 2. The solitary substantial grievance of the revenue is that Ld. CIT(A) has erred in deleting the addition of ₹ 42,87,880 which was added by the Assessing Officer by estimating the income after rejecting the book result of the assesse. 3. The brief facts of the case are that ssessee has filed its return of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... should not be any sale purchase activity or otherwise sec. 191 should be attracted on the assessee. (iv) In the partnership deed it is also mentioned that, this deed was carrying on their partnership business of cloth commission agents and financing business (v) During the current year, the assessee has shown G.P. at the rate of .20% compare to the immediate preceding year, the assessee has shown G.P. at the rate of 1.91% on the total sales of 32.38 lacs. He rejected the book result and estimated the profit by applying GP rate of 2.5%. Accordingly, he made an addition of ₹ 42,87,880/-. 4. On appeal, Ld. CIT(A) has deleted the addition by observing that assessing Officer failed to point out any defects in the books of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bout the correctness or completeness of the accounts of the assessee, or where the method of accounting provided in sub-section (1) or accounting standards as notified under sub-section (2), have not been regularly followed by the assessee, the Assessing Officer may make an assessment in the manner provided in section 144. 7. From the bare reading of this section, it would reveal that it provides the mechanism how to compute the income of the assessee. According to sub-clause (i), the income chargeable under the head Profits and gains of the business or professions or income from other sources shall be computed in accordance with the method of accountancy employed by an assessee regularly subject to the sub-section (2) of section 145 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nsidered the reason assigned by the Assessing Officer but the above reason does not suggest any defect in the accounts which prohibits him to deduce the true income from the accounts. Fall in GP cannot be a ground for rejecting the book result shown by the assesse. It is one of the corroborative fact for the Assessing Officer to doubt the books but the Ld. Assessing Officer ought to have pointed out the defects in the accounts, only thereafter he can estimate the GP. Ld. First Appellate Authority reappreciated the material available and only then deleted the addition. After going through the order, we do not find any reason to interfere with it. Accordingly, appeal of the revenue is rejected. Order pronounced in the open court on 15-0 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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