TMI Blog2019 (1) TMI 461X X X X Extracts X X X X X X X X Extracts X X X X ..... s. As regards the stand of the DR that the assessee himself has agreed to the impugned addition and thus prevented the Assessing Officer from further enquiries, no merit in this plea either. The mere fact that the assessee has agreed to the suggestion of the Assessing Officer cannot constitute estoppel against his rights to challenge the same on merits. In any case, the amount involved being small and in view of this discussion and bearing in mind entirety of the case, fit and proper to delete the impugned addition in respect of low Gross Profit margin. Disallowing various expenses - Held that:- It is sufficient to take note of the fact that the impugned disallowance has been made out of several expenses such as telephone expenses, ve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Officer was not satisfied with the reasons assigned by the assessee. It was noted that while the assessee maintained stock register the same is not properly maintained and it was for this reason the book results were rejected by invoking provisions of section 145 of the Act and Gross Profit margin of the assessee was estimated at 4.22% as against the Gross Profit margin of 3.9% disclosed by the assessee. Aggrieved, assessee carried the matter in appeal before the ld. CIT(A). It was submitted by the assessee that the fall in Gross Profit margin is only marginal. In any case, the Gross Profit rate can never remain static as it is affected by number of factors including economy and non-economy factors. It was contended that such minor fall in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and vague statement that the stock register not having been properly maintained. In any case, what has been stated to be reason for Gross Profit addition is fall in the Gross Profit rate vis-a-vis previous year without any other specific reasons. The very approach so adopted by the Assessing Officer is devoid of legally sustainable basis. The business has been never so static so as to ensure same G.P. rate from year to year particularly when the assessee is dealing in such products as electric goods where Gross Profit margin not only varies from item to item but from season to season. I am, therefore, of the considered view that the impugned addition thus not deserves to be sustained on merits. 6. As regards the stand of the Departmental ..... X X X X Extracts X X X X X X X X Extracts X X X X
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