TMI Blog2014 (9) TMI 1176X X X X Extracts X X X X X X X X Extracts X X X X ..... stock register. Thus there was no justification in rejecting the books of account of the assessee i.e. M/s. Mohan Lal Mahendra Kumar (MMJ), Jaipur. - decided against revenue - ITA No. 737/JP/2011 - - - Dated:- 12-9-2014 - Shri R.P. Tolani And Shri T.R. Meena, JJ. Department by: Shri D.C. Sharma Assessee by : Shri Vijay Goyal and Shri Gulshan Agarwal ORDER R.P. Tolani, This is an appeal filed by the Revenue against the order of the ld. CIT(A)- I Jaipur dated 16-06-2011 for the assessment year 2008-09 wherein the Revenue has raised following grounds:- Whether on the facts and in the circumstances of the case and in law the ld. CIT(A) is justified in:- (i) not upholding the rejection of books of account whe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... k register of the assessee. Further, the sale was at the prevailing market price and payment was received vide cheque. He has also submitted that of the total sales made during the year the sales made to Silver and Silver constituted only .03%. 4.4 Regarding the decline in gross profit the AR has submitted that while the gross profit has improved on sale of jewellery from 6.93% last year to 19.81% there has been a decline in the gross profit on the sale of bullion. In the previous assessment year turnover of bullion was ₹ 62,87,54,088/- whereas during this year the turnover of billion has increased by more than 4 times to ₹ 3,33,24,90,301/-. The gross profit on the sale of billion has declined from .66% to .10% during the yea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts could be found to controvert the submission of the A.R. that the loss was suffered by the assessee on the account of daily fluctuations on price of bullion therefore, the impugned addition of ₹ 34,11,060/- is directed to be deleted. First two grounds of appeal are decided in favour of the appellant. 2.3 Aggrieved by the order of the ld. CIT(A), the Revenue is before us. 2.4 During the course of hearing, the ld. DR relied on the order of the AO. 2.5 On the other hand, the ld. Counsel for the assessee Shri Vijay Goyal, C.A. vehemently argued that the AO rejected the books of account by invoking the provisions of Section 145(3) only in the case of M/s. Mohanlal Mahendra Kumar, one of the proprietorship concern, drawing adve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on proper verification of the facts, pleadings and demonstration made by the assessee. The ld. DR has not been able to controvert any of the findings given by the ld. CIT(A).Thus the order of the ld. CIT(A) deserves to be upheld. 2.6 We have heard the rival contentions and perused the materials available on record. We find merit in the arguments of the ld. Counsel for the assessee. From the record, it clearly emerges that the assessee was maintaining regular books of account and stock inventory. The turnover of bullion had gone up by four times. The decline of gross profit rate has been duly explained by the assessee due to the reason that there was fluctuations in the bullion prices. The books of accounts of this proprietorship concern ..... X X X X Extracts X X X X X X X X Extracts X X X X
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