TMI Blog2011 (6) TMI 953X X X X Extracts X X X X X X X X Extracts X X X X ..... we have heard Shri Pradeep Kumar Mitra, ld. Sr. DR for the Revenue and Shri R.N. Gupta, ld. Counsel for the assessee. The crux of arguments on behalf of the Revenue is that the ld. CIT(A) is not justified in deleting the addition without considering the provisions of sec. 145(3) and further directing the Assessing Officer to accept the income as declared by the assessee. On the other hand, the ld. Counsel for the assessee strongly defended the impugned order by submitting that there is no infirmity in the impugned order. 3. We have considered the rival submissions of ld. representatives of both sides and perused the material available on record. Before coming to any conclusion, we are reproducing hereunder the relevant portion as contain ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... een under-recorded or unaccounted sales were made by the appellant. Since, the quantity of the liquor is regulated by the Excise Department and no discrepancy in stock or quantitative details was found by the Assessing Officer, non maintenance of sales voucher could not alone be a basis to reject the books of accounts. It is also noticed in this case that the appellant had shown net profit of 1.77%, which was claimed by the appellant to be reasonable considering the prevailing rate in the trade of country liquor and IMFL. It may also be noted that it is not possible to have constant gross profit or net profit in a trade. Since no material was brought on record to show that the sales were made outside the books of accounts of the appellant o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sing Officer that the assessee firm showed total sales at ₹ 8,89,09,784/- and before allowing salary to partners, the net profit was shown at ₹ 15,70,760/- resulting into net profit rate of 1.77%. The assessee also showed interest on FDR at ₹ 82,230/-. As per the ld. Assessing Officer, the net profit shown by the assessee was towards lower side by observing that the assessee showed all sales in cash and cash memos were not maintained whereas the stand of the assessee was that the retail business was totally controlled and governed by Excise Rules and the Excise Department has day to day control on the business of the assessee and also the selling price of the liquor was displayed on the sign board and the staff of the Exci ..... X X X X Extracts X X X X X X X X Extracts X X X X
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