TMI Blog2018 (3) TMI 225X X X X Extracts X X X X X X X X Extracts X X X X ..... Assessee; or (iii) The income has been determined not in accordance with notified income and disclosure standard. It is not the case of the Revenue that any of the above circumstances specified in Section 145(3) of the Act are satisfied. The rejection of accounts is justified on the basis that it is not possible for the Assessee who is a trader to sell goods at the prices lower than the market price or purchase price. In fact as observed by the Apex Court Commissioner of Income Tax, Gujarat Vs. A. Raman & Co. (1967 (7) TMI 2 - SUPREME Court) and in S.A. Builders Vs. Commissioner of Income Tax [2006 (12) TMI 82 - SUPREME COURT] the law does not oblige/compel a trader to make maximize its profits. - Decided against revenue - Income ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ows: Our company, is a concern mainly engaged in trading of steel engineering products. We purchase and sale these goods on very competitive low margin but our volume are very high. We normally purchase the goods and resale them at the minimum time gap. It is a known fact that rates of steel keep fluctuating and it is a very volatile item. To avoid any risk due to market price fluctuation. We have to take the fast decision to sell out of purchase, the steel at the available rate received from the market, some time it may be sold on a low price or some times at a higher price. During the year some of the transactions are sold at lower price because of the expectation of the rate of steel going lower and lower. More over due to fact th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s nor with regard to quantity details furnished by the Respondent-Assessee. In the above circumstances, it held that merely because the Respondent-Assessee being a trader has sold goods at prices lower than the purchase price and/or the prevailing market price would not warrant rejection of the books of accounts. 6. The grievance of the Revenue with the impugned order is that the Respondent-Assessee has sold goods at price lower than its purchase price. Therefore, the books of accounts cannot be relied upon. Thus, the rejection of the books of accounts and estimation of profits in these facts should not have been interfered with. 7. We find that it is not the case of the Revenue that the amounts reflected as sale price and/or purcha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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