TMI Blog2016 (4) TMI 1010X X X X Extracts X X X X X X X X Extracts X X X X ..... get remuneration on this amount. Considering this aspects, we are of the view that the ld.CIT(A) has erred in excluding this amount for the purpose of calculation of remuneration of the partners under section 40(b). We allow the ground of appeal raised by the assessee, and delete the addition made by the ld.CIT(A) on this issue. This interest income be assessed as business income. - ITA.No.1318/Ahd/2012 - - - Dated:- 16-3-2016 - SHRI RAJPAL YADAV, JUDICIAL MEMBER AND SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER For The Assessee : Shri M.K. Patel, AR For The Revenue : Shri Dinesh Singh, Sr.DR ORDER PER RAJPAL YADAV, JUDICIAL MEMBER: The assessee is in appeal before us against the order of the ld.CIT(A) dated 27.1.2012 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 10, 25.9.2010, 19.10.2010 and 25.10.2010. The basic thrust of the assessee s stand was that in this year, it has changed business module. The total turnover in this year was of ₹ 17,56,75,361/-. In this year, the assessee firm had mostly sold polyester fibers of the well-known Reliance Industries, where the rate of commission is well-known to all the purchasers and the rates are fixed. The assessee operates at a profit margin rate of 0.25% to 0.50%. The ld. counsel for the assessee further contented that the GP in the Asstt.Year 2006-07 was 9.75%; in the Asstt.Year 2007-08 4.70% and in this year it is 1.74%. But, if the GP in respect of purchase and sale of cotton segment is calculated, then, it was 1.43% in the Asstt.Year 2007-08 and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the Official Gazette from time to time [accounting standards] to be followed by any class of assessees or in respect of any class of income. (3) Where the Assessing Officer is not satisfied about 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.] 6. A bare reading of Section 145 would reveal that it provide the mechanism how to compute the income of the Assessee. According to subsection 1, the income chargeable under the head profit and gains of business or pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tted by the assessee for reconciliation did not match with the figures in audit report. The ld. Counsel for the assessee took us through page no.61 of the paper book, wherein, he has tried to explain the bill of ₹ 9,55,953/- alleged to have been wrongly debited in its purchase register. There is a discrepancy of 19,329 kgs. of purchase and sales of cotton. There are other discrepancies also, for which an effort has been made to explain vide letter dated 25.10.010 whose copy available at page no.63 of the paper book. After due considerations of all these explanation, we are satisfied that it was quite difficult for the AO to deduce the true income of the assessee from the alleged account, though, the AO has not specifically recorded a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in cotton segments was 1.43%, whereas the GP in the present year in cotton segment is 1.18%. Thus, according to the assessee, the GP rate of 1.43% should have been applied on the cotton sales in the present year. When this calculation was brought to the notice of the ld.DR, he submitted that how this rate has been worked out is not discernible. The AO has not commented on the alleged segmental sales of cotton in Astt.Year 2007-08. He submitted that this issue be set aside to the file of the AO for verification. 10. On due considerations of the above facts, we are of the view that this aspect requires to be verified at the level of the AO. Therefore, we set aside this issue for limited purpose. The ld.AO shall first determine the rate of ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
