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TMI Blog2017 (5) TMI 923X X X X Extracts X X X X X X X X Extracts X X X X ..... in applying the gross profit @ 4% as against the rate of 30% applied by the AO, by ignoring the fact that even the Statute has provided such option u/s 44AD to accept profit rate only @ 8% & above u/s 44AD. 2. The appellant craves leave to add or amend the grounds of appeal before the appeal is heard or disposed off. 2. The assessee has also filed the Cross Objection in the present appeal assailing the correctness of the order of the ld. CIT(Appeals) on the following grounds : 1. On facts and in circumstances of the case Lnd. CIT (A) was not justified in applying the provision of section 145 of the I.T.Act when the assessee is maintaining regular books of account, inventory of stock and no infirmity in the books of account was found. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rs. 90/- per kg. and assessee also sold honey & @ Rs. 95 per Kg. vide sale voucher no 250 dt. 30.01.2011. On this basis average comes to Rs. 92.5 per kg. In this way and on this basis the assessee should have shown GP more than 50%. Considering the facts and circumstances of the case and taking a reasonable view of the matter, GP rate of 30% on the sales of Rs. 82439918/- is applied. 7. On this basis the gross profit works out to Rs. 24731975/- as against Rs. 1905396/- shown by the assessee. This would result into an addition of Rs. 22826579/- as against Rs. 1905396/- shown by the assessee. This would result into an addition of Rs. 22826S79/-. Accordingly an addition of Rs. 22826579/- is made to the taxable income of the assessee. 4. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... show that no addition has been made. It was further submitted that in 2013-14 assessment year, it had been brought to the notice of the ld. CIT(Appeals) that the Assessing Officer himself in 143(3) proceedings, had accepted gross profit rate of 1.50% on same set of facts. Accordingly, it was his submission that the books of account were wrongly rejected and no addition on facts should have been sustained. 7. We have heard the rival submissions and perused the material available on record. We find that the assessee before the ld. CIT(A) relied upon past history on the issue and before us has relied upon the order passed by the A.O. under section 143(3) in 2013-14 assessment year. Addressing the said order first, it is seen that the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction filed by the assessee, we note that on the facts, the view taken by the Assessing Officer in 2013-14 assessment year is not of much help as it proceeds on a different set of facts as would be evident from the following extract of the order dated 21.03.2016 :- 3.1 During the course of instant assessment proceedings, the assessee filed audited balance-sheet, trading account and Profit & loss account along with annexures thereto, stock register and purchase/sale bills. It has been submitted that the valuation of closing stock has been made at more than the purchase price; that the valuation stock has been made on FIFO method; that the rates applied by the AO for the assessment year 2011-12 are not applicable for the subsequent years; th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urchase/sale chart filed by the assessee, the average purchase rate for the month pf March 2013 comes to Rs. 100.70 per kg. It has also been submitted during the course of assessment proceedings, that the assessee has followed FIFO method in trading. Therefore, the closing stock would be out of the purchases made during March, 201.3, requiring its valuation @ Rs. 100.70 per kg. In this way, the value of closing stock works out to Rs. 5,43,226/- (i.e.5394.5 x 100.70)/-. The assessee has shown its value at Rs. 5,21,948/-. (Therefore, an addition of Rs. 21,278/- (i.e 5,43,226-5,21,948) is hereby made on account of difference in valuation of the closing stock of honey, to which the Id counsel has also consented. 7.2 Accordingly, in the afores ..... X X X X Extracts X X X X X X X X Extracts X X X X
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