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TMI Blog2014 (9) TMI 1153X X X X Extracts X X X X X X X X Extracts X X X X ..... to the appellant. 2. The Ld. CIT(A) erred in law as well as on the facts and circumstances of the case in confirming that the Assessing Officer was justified in rejecting the books of accounts of the appellant applying the provisions of section 145(3) of the Act. 3. The Ld. CIT(A) erred in law as well as on the facts and circumstances of the case in confirming the addition of trading profit of Rs. 1,84,253/- to the returned income of the appellant. 4. The appellant reserves the right to add to the above grounds of appeal and/or to amend, modify and to delete any of them on or before the hearing of appeal." 2 From the above grounds, it is gathered that the only grievance of the assessee relates to the sustenance of trading addition of Rs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the ld. CIT(A), who sustained the addition of Rs. 1,84,253/- by estimating the gross profit rate at 15% instead of 20% estimated by the Assessing Officer. The Ld. CIT(A) held that the Assessing Officer had only compared the gross profit rate declared by other concerns whereas as a general rule, the Assessing Officer should have compared all the facts like turnover, capital employed, locality etc. and not a pick & choose manner as done in the case of the assessee. He also pointed out that the turnover of all the comparable cases was much below the turnover of the assessee. Now the assessee is in appeal. 5. The learned counsel for the assessee reiterated the submissions made before the authorities below and further submitted that the compar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... one through the material available on record. In the present case, it is an admitted fact that the gross profit rate declared by the assessee for the year under consideration was at 13.61% in comparison to the gross profit rate in the immediately preceding year at 13.32%. Therefore, the gross profit rate declared by the assessee was better in the year under consideration and even if the books of accounts were rejected, no addition was called for when the assessee has shown better trading results and the comparable cases relied by the Assessing Officer were not having the same facts as were involved in the case of the assessee particularly the turnover was less and the units were new in comparison to the assessee. The Ld. CIT(A) also while e ..... X X X X Extracts X X X X X X X X Extracts X X X X
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