TMI Blog2017 (3) TMI 1472X X X X Extracts X X X X X X X X Extracts X X X X ..... e claim of the assessee, the deduction/ set-off on account of DEPB income of ₹ 18,70,576/- would also be available to the assessee as set-off as the assessee has already shown this income in profit and loss account. Therefore, net income is worked out at ₹ 14,80,589/- (33,51,165-18,70,576) as against the income computed at ₹ 44,68,220/-by the AO as per the assessment order and ₹ 6,25,650/- disclosed in return of income by the assessee under regular provision of Act. As regards, the deletion of ₹ 18,70,576/- on account of addition of DEPB income by the AO, we are of the view that the ld. CIT(A) has wrongly deleted the same while deleting total addition of ₹ 44,68,220/- made on application of net profit as the said income is shown by the assessee in its profit and loss account. However, the set off of the same is available to the assessee as given above by us from the estimated income as computed above by taking the gross profit at 6% estimate of gross profit rate. Therefore, we make it clear that the net taxable income after this order would be at ₹ 14,80,589/- as against returned income of ₹ 6,25,650/- as shown by the assessee. Appeal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ir Accountant was travelling by Train, for which FIR was also lodged with GRP at Ratlam. In support of his contention, the AO asked the assessee to produce the original copy of FIR, details regarding theft of books of accounts, original copy of audit report and all books of accounts, but the assessee could filed only copies of purchase and sales bills, audit report, ledger account, copy of FIR. But the assessee could not file originals of these documents. The copy of audit report filed by the assessee was also bearing signature of C. A. only but signature of Director of the company was not there. Therefore, the AO expressed his doubt on the veracity of the audit report. It was also noticed that total sales during the year were at ₹ 5,58,52,756/- as per the profit and loss account, whereas as per sales register, sales were appearing at ₹ 5,94,35,212/-. Thus, three was a difference in sales figure amounting to ₹ 35,82,456/-. Further, the AO has also got verification of sales through Commercial Tax Officer. The CTO vide his letter dated 26.03.2013 stated that the assessee company is registered with the Commercial Tax Department as on 03.03.2010 and for the period fro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,70,579/-, the ld. CIT(A) held that this is an income represented on account of DEPB incentive received on exports sales of ₹ 4,94,69,076/- for the exports made by the assessee, which has already been shown by the assessee in the profit and loss account as income from other sources. Hence, this addition was also deleted. Similarly, addition of ₹ 1 lakh made on account of unexplained share capital of the Director was also deleted. 1.3 Being aggrieved, the Revenue has filed this appeal before the Tribunal. The ld. DR contended that the assessee has failed to produce original copy of sale bills, purchase bills, vouchers, stock registers during the course of assessment proceedings. The contention of the assessee that books of accounts were stolen during travelling by their representative in Train for which FIR was also lodged with GRP Ratlam, but the assessee has failed to produce original copy of FIR lodged with GRP, Ratlam, to establish that there was theft, wherein original documents like books of accounts, sale bills, purchase bills, vouchers of expenses and stock registers were stolen. Further, the audit report was also not filed in original and copy of audit report ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s to adopt 8% as the profit on sales as the assessee is mainly engaged in the export sales, wherein profit margin is very low. Therefore, the ld. AR supported the order of the CIT(A). 1.5 We have considered the facts, rival submissions and perused the material available on record. We find that the assessee has failed to produce original copies of sale bills, purchase bills, stock registers and vouchers for expenses and also original copy of audit report. Further, the assessee has also failed to produce original copy of FIR lodged with the GRP, Ratlam and detailed note regarding theft of books of accounts and other documents and audit report as all the books of accounts evidencing that these were not available due to theft. We also find that the AO vide his questionnaire dated 10.12.2012 and 07.03.2013 had asked to produce the original books of accounts and other documents so that authenticity of its claim can be examined. It was also noticed by the AO that the copy of audit report were only signed by the C.A., but the same was not signed by the Director of the Company. We further found that the reports submitted by the Commercial Tax Officer vide letter dated 26.03.2013 also sho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oncern showing at 5.20% is a reasonable margin and requires no addition. Thus, the assessee has claimed that the gross profit of the trading concern is at 5.2 % as against net profit of 8% considered by the AO after rejection of books of accounts. We also find that the assessee has shown net profit in profit and loss account at ₹ 4,00,419/- on the total sales of ₹ 5,58,52,756/- in the profit and loss account which gives net profit rate at 0.72 % only. Therefore, considering all these facts, we are of the considered opinion to adopt the gross profit rate at 6% which in our view would be just, fair and reasonable in the case of the assessee. Accordingly, gross profit is worked out at ₹ 33,51,165/- by applying 6% gross profit on total sales of ₹ 5,58,52,756/-. Considering the claim of the assessee, the deduction/ set-off on account of DEPB income of ₹ 18,70,576/- would also be available to the assessee as set-off as the assessee has already shown this income in profit and loss account. Therefore, net income is worked out at ₹ 14,80,589/- (33,51,165-18,70,576) as against the income computed at ₹ 44,68,220/-by the AO as per the assessment ..... X X X X Extracts X X X X X X X X Extracts X X X X
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