TMI Blog2018 (5) TMI 1632X X X X Extracts X X X X X X X X Extracts X X X X ..... above, ground decided in favour of the assessee. - ITA Nos.266 And 267/Lkw/2016 - - - Dated:- 21-5-2018 - SHRI T. S. KAPOOR, ACCOUNTANT MEMBER AND SHRI PARTHA SARATHI CHAUDHURY, JUDICIAL MEMBER For The Appellant : Shri P. K. Kapoor, C. A. For The Respondent : Shri J. S. Minhas, CIT, D.R. ORDER PER T. S. KAPOOR, A.M. These are two appeals filed by the assessee against the separate orders of learned CIT(A) both dated 30/03/2016 for assessment years 2001- 02 and 2003-04. 2. In these appeals various grounds have been taken. Ground No. 1 to 4 relate to the legal issues raised by the assessee whereas ground No. 5 to 8 relate to the issue on merits. Both the appeals were heard together and therefore, for the sake of convenience, a common and consolidated order is being passed. 3. Learned A. R. did not press ground No. 1 to 4 in these appeals therefore, the same are dismissed as not pressed. 4. Ground No. 5 in the appeal relates to the action of learned CIT(A) by which he has upheld the action of Assessing Officer by which the Assessing Officer has applied the gross profit rate of 41.05% on enhanced sales of Rs. One crore in I.T.A. No.267 and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Learned D. R., on the other hand, submitted that these submissions were not made before learned CIT(A) and before the Assessing Officer also The assessments were completed u/s 144 and therefore, it is a new stand taken by the assessee which cannot be accepted. 7. Learned A. R., in the rejoinder, submitted that these submissions were duly made before learned CIT(A) also and in this respect our attention was invited to paper book pages 98 to 129 where a copy of written submissions dated 07/09/2009 was placed. Our specific attention was invited to paper book page 127 where vide para 29 the assessee has submitted that the said documents belong to Shree Gopal Engineering Chemical Works (P) Ltd. It was submitted that the assessee had also stated that the purchases noted at page LP-11 duly tallies with the ledger account as appearing in the books of Shree Gopal Engineering Chemical Works (P) Ltd. Similarly our attention was invited to paper book pages 62 to 83 where a copy of written submissions dated 07/09/2009 for assessment year 2001- 02 were placed. Our specific attention was invited to paper book page 82 which showed that the entries on this LP-11 relate to Shree Gopal Engine ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment Year 1995-96onwards the assessee has derived the following GP rate: Sl. No. Assessment Years Particulars Sales Gross Profit G.P. Rate(%) (i) 1995-96 17.12 5.09 29.72 (ii) 1996-97 28.61 7.70 26.90 (iii) 1997-98 29.01 7.48 25.78 (iv) 1998-99 30.93 0.40 1.31 (v) 1999-00 37.30 11.73 31.45 (vi) 2000-01 53.06 14.15 26.48 7. On the basis of the preceding five years , GP rate as has been accepted by the Revenue , I am of the view that the G rate shown by the assessee @ 26.48% is much higher, although it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng to Shree Gopal Engineering Chemical Works (P) Ltd. The said affidavit was separately filed for the two years, a copy of which is placed at paper book pages 48 to 51. For the sake of completeness the same is reproduced below: I Viond Kumar Srivastava, the deponent solemnly affirm and state on oath as under: 1. That the deponent has been working as Accountant in M/s Vikrant Chemico Industries (P) Ltd., having its registered office at the within mentioned address, hereinafter referred to as Company , and has been looking after its tax matters also and he is, therefore, acquainted with the facts deposed to hereinafter. 2. That in response to the notices issued by the Asstt. Commissioner of Income tax, Central Circle-VI, Kanpur, the deponent has been regularly appearing before the Assistant Commissioner of Income-tax, Central Circle-VI, Kanpur, the Assessing Officer and during the course of such hearings all the relevant details and information as had been called for, were duly submitted. 3. That copies of all such explanation /documents like (i) reply dated 28th December, 2007 (without enclosures); (ii) statement showing comparative chart of gross profit ra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the said Company itself. 10.That under a mistaken notion of law, the Company has offered the entire sums aggregating ₹ 3,90,069/- as its income in the return field in compliance with the notice under section 153A. It Is stated that while computing the income of the Company due regard should have been had to the withdrawals also as are appearing in the said very bank account and only the resultant sum/income could have been treated as income liable for taxation. 11. That on the facts and circumstances of the case and looking to the various debits and credits as appearing in the said bank account, the entire credits, even if considered as sales, could not have been treated as income of the Company and the Assessing Officer himself should have made necessary adjustment on that score in view of the principle laid down by the Hon'ble apex court in the case of CIT Vs. Mahalaxmi Sugar Mills Co. Ltd. reported in 116ITR 920, wherein their lordships have observed and held as under :- There is a duty cast on the Income-tax Officer to apply the relevant provisions of the Indian Income-tax Act for the purpose of determining the true figure of the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9690 116900.00 4496 22721 31.7.2000 9715 1 '7202.00 22721 31.7.2000 9715 117202.00 37038 14.10.2000 9495 I '.0275.00 37038 14.10.2000 9495 120275.00 44371 23.11.2000 9665 1 9497.00 4437 1 23. 1 1 .2000 9665 124277.00 4780 ., CST value not added in the seized papers. 97197 2.2.2001 9725 1 19055.00 97197 2.2.2001 9725 129055.00 93262 31.3.2001 9590 1 2368.00 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 36843 02.11.2002 9235 122553.00 4714.00 CST value not added 4906 06.05.2003 9145 121350.00 4906 06.05.2003 9145 121358.00 Entered (0304) 3428 30.10.2003 15050 220770.00 3428 30.10.2003 15050 220770.00 Entered (0304) 24133 25.08,2003 9295 128995.60 24133 25.08.2003 9295 128995,50 Entered (03- 04) 44790 03,12.2003 9290 138857.00 44790. 03.12.2003 929 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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