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TMI Blog2016 (2) TMI 663X X X X Extracts X X X X X X X X Extracts X X X X ..... e course of assessment proceedings and the compilation of documents filed in the Appeal proceedings thus denying adequate opportunity to the assessee and this extent the orders of the Date of Hearing 02 .11.2015 Date of Pronouncement 15.11.2015 Ld.CIT(A) Commissioner of Income Tax Appeals XXVIII is unjust, arbitrary and illegal and deserves to be quashed. 2. That on the facts and circumstances of the case the Ld. CIT(Appeals)-XXVII was not justified in confirming the Rejection of Trading Results and the books of accounts u/s 145(3) even when all the documents and books of accounts were produced before the Ld.CIT(A) Assessing Officer and the Compilation of documents justifying the trading results were filed before the Ld.CIT(A) Commission ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... only. The position has been reversed mainly by incorporating bank interest on FDR of Rs. 53,600/- and exempt dividend income of Rs. 79,220/- so as to posed a net profit of Rs. 1,25,611/- only. The business was yielding zero (negative income) inserted a closer look despite the constraints of time on account of being the transactional year when limitation stands preponed in addition to several instances of default in representation. The position of gross profit obtaining in the garment export business can be illustrated as under:- F.Y 2001-02 F.Y 2002-03 F.Y 2003-04 Sale 9,06,50,735 11,98,15,532 10,35,87,956 Gross Profit 2,39,59,140 1,97,19,704 1,16,34,943 G.P. Rate 23.21 14.82 10.24 4. The comparative chart o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... No. Items Qty. Mfd. Qty. FOB Sale Value Resultant G.P as per "Costing Sheet" 1 Boys Pant 1052 Pcs 1020 Pcs 2,62,334 16.32% 2 Cotton Ladies Blouse 2062 Pcs 2000 Pcs 3,39,047 22.80% 3 Men Shirt 3298 Pcs 3228 Pcs 7,67,941 39.89% 6. The Assessing Officer observed that the assessee was not able to explain the sharp disparity in the resultant G.P with the over G.P rate of 10.24% obtaining in the year under review as well as not able to identify any particular export order which may have resulted in a loss or nominal profit so as to marginalize the overall profit scenario. The Assessing Officer further observed that the "Costing Sheet" of the first Costing Sheet was analyzed to demonstrate that excessive quan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the assessee. The assessee is before the Tribunal for the contesting grounds preferred hereinabove in Para 2. 8. The AR submitted that the assessee is in the business of fabrication of export quality material, the assessee is the proprietor of M/s Alankar Creations and is maintaining regular books of accounts and stock registers which are also duly audited. The assessee completes books of accounts on two occasions before the Assessing Officer. The Assessing Officer has not taken into account. Books of accounts maintained by the assessee in the regular course of business the same is not proper on behalf of the Assessing Officer the nonexamination of books of accounts amounts to denied of the opportunity to the assessee to substantiate h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts were rightly rejected as the assessee failed to produce the same. The reasons are properly set out in Para 7 & 8 of the Ld. CIT(A)'s order. The DR also relied upon the Assessing Officer 's order. 10. We have perused all the records and proceedings as well as heard both the parties. Records show that the contention of the DR that books of accounts were not produced before Assessing Officer was not correct. As relates to rejection of books of accounts maintained by the assessee by the Assessing Officer without assigning any proper reason is not proper. The Assessing Officer has not taken into account all the invoices, bills related to the export orders, which should have been taken into account by the Assessing Officer. The Ld. CIT(A) als ..... X X X X Extracts X X X X X X X X Extracts X X X X
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