Feedback   New User   Login      
Tax Management India. Com TMI - Tax Management India. Com
Home Acts / Rules Notifications Circulars Tariff/ ITC HSN Forms Case Laws Manuals Short Notes Articles News Highlights
Extracts
Home List
← Previous Next →

ASSISTANT COMMISSIONER OF INCOME-TAX Versus RAKESH BINNY SHOW ROOM

2004 (5) TMI 586 - itat Amritsar

IT APPEAL NOS. 808 AND 810 (ASR.) OF 1996 AND 617 (ASR.) OF 1997 - Dated:- 31-5-2004 - U.B.S. Bedi, Judicial Member, And R.S. Syal, Accountant Member For the Appellant : Sudhir Sehgal and Virinder Sachdeva For the Respondent : S.C. Pahwa ORDER Per U.B.S. Bedi, Judicial Member. - These three appeals of the Department with respect to two assesses are directed against the order passed by the learned CIT(A), Bhatinda in the case of M/s. Rakesh Binny Show Room dated 12-8-1996 for the assessment year .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

by the assessee against which the assessee preferred appeals and while objecting to such addition, it was pleaded that the Assessing Officer has made the addition by applying G.P. rate of 39.67 per cent merely on presumption and without any basis. It was also submitted that applications of the G.P. at 39.67 is against the past history of the assessee and was also not based on any comparabable case. In the assessment order, the Assessing Officer has observed that assessee has shown G.P. rate for .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

stock register has been maintained by the assessee showing the quantity-wise details of purchases and sales. The Assessing Officer impounded the books of account under section 131 on 21-12-1994 and extracted quantity-wise details of different items from the purchase and sale bills. These details were confronted by the Assessing Officer to the assessee and in response to which the assessee filed reply. After examining the reply of the assessee, the Assessing Officer computed the difference in th .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

r the details given at page 3 of the assessment order. The Assessing Officer also found that the assessee has shown opening stock at ₹ 9,24,310 and after adding the difference in the sales and purchases the Assessnig Officer found that the closing stock with the assessee shuold have been at ₹ 15,99,898 against the closing stock of ₹ 9,41,450 shown by the assessee leading, to difference of ₹ 6,75,588. In view of these facts the Assessing Officer came to the conclusion that .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

. Those will be reflected in the closing stock. (iii)The GP rate of the earlier years is the same and also in this line of business the G.P. rate is comparable. 3. Secondly, it was submitted that the value of the opening and closing stock has been taken at cost price. However, if any item is not sold within one year the value substantially goes down because of absolence and also getting the items out of fashion. It was also explained that the value of the closing stock also goes down because som .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

total quantity of purchases and sales throughout the year have been taken into account after allowing adjustment of opening and closing stock. The Assessing Officer also rejected the assessee's contention regarding the value of opening stock and closing stock is the same. The Assessing Officer also pointed out that the cut pieces which are generated during the course of sales are also being sold out throughout the year and, therefore, were also adjusted in the sales. So by making his own tr .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

G.P. shown is more than the declared by the assessee. It is also seen from the chart of G.P. of various items filed by the learned counsel that the G.P. rate varies from 6.12 per cent to 15.56. Therefore, keeping in view the facts and circumstances of the case in my view the G.P. rate applied by the Assessing Officer at 39.67 per cent appears to be without any basis. It has already been pointed out that the Assessing Officer has not preserved the details on the basis of which the G.P. was calcu .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

red to earlier years and as compared to other comparable cases in my view there was no justification on the part of the Assessing Officer to disturb the book results of the appellant. It is very strange that the Assessing Officer has made huge addition without preserving the basis for the addition. Under these circumstances, the addition made by the Assessing Officer cannot be sustained and, therefore, the same is deleted." 5. Against which the Department is in appeal and while relying upon .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

arlier to the year under consideration the G.P. rate 9.93 per cent to 11.49 per cent has been accepted. Therefore, there was no occasion for the Assessing Officer to make the addition and the learned CIT(A) has rightly deleted the same. It was pleaded for confirmation of the same. 6. After hearing both the sides and considering the material on record we find that the basis and the reasoning as given by the learned CIT(A) in deleting the addition made by the Assessing Officer are sound and convic .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

Forum
what is new what is new
  ↓     bird's eye view     ↓  


|| Home || About us || Feedback || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version