TMI Blog2019 (4) TMI 47X X X X Extracts X X X X X X X X Extracts X X X X ..... on, the assessee had shown G.P. rate of 5.35% on a turnover of ₹ 51.86 crores for the year under consideration as against the G.P. of 5.26% on turnover of ₹ 45.65 crores in the A.Y. 2013-14 and 3.18% on a turnover of ₹ 33.16 crores in the A.Y. 2012-13. A trading result even after substantial increase in sale is much better than the G.P. rate of earlier two years. Accordingly, no justification for the trading addition so made by the AO. Ad hoc disallowances in respect of telephone, travelling and vehicle expenses etc. - HELD THAT:- Ad hoc basis by observing that a personal element cannot be ruled out. In this regard we observe that the assessee being a corporate entity, no disallowance can be made on the ground of person ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in brief are that the assessee is engaged in manufacturing of cotton cloths. During the course of scrutiny assessment, the Assessing Officer made enquiry with regard to the purchases so made by the assessee. Out of all the parties, the Assessing Officer called information U/s 133(6) of the Act from five parties on test check basis. In case of three parties, the notices were returned back unserved. The Assessing Officer stated that it got replies by post in some cases with regard to brokerage, rebate, discount and processing expenses so incurred by the assessee. However, not satisfied with the same, the Assessing Officer rejected the books of account by invoking the provisions of Section 145(3) of the Act and made the addition of ₹ 7, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r submitted that in earlier year, security assessments were completed wherein results shown by the assessee was accepted. As per the ld AR, the G.P. shown during the year at 5.35% is much better than the G.P. shown in the earlier year which is 3.18% for the A.T. 2012-14 and 5.26% for the A.Y. 2013-14. Accordingly, it was prayed that no trading addition was warranted merely by rejecting the books of account. 6. On the other hand, the ld DR has contended that the notices issued by the Assessing Officer to some of the supplies were returned unserved and the Assessing Officer found that the assessee has not maintained proper stock register. Therefore, rejection of books of account and additions so made by the Assessing Officer was justified. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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