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2019 (8) TMI 467

..... TAT deleted the addition - HELD THAT:- Tribunal after detail consideration came to the conclusion that the assessee's books were not rejected. Merely because, in the present year, the assessee had reflected lower margin, would not be a ground for making additions. Most significantly, the assessee had explained the reason for sale of products to its sister concern at a lower rate than that of the assessee had supplied to the other purchasers by pointing out that the price quoted to the sister concern was minus sales tax component since the product was meant for export. The entire issue is based on appreciation of evidence on record. No question of law arises. The Appeal is dismissed. - INCOME TAX APPEAL NO. 615 OF 2017 - 5-8-2019 - AKIL .....

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..... ns and perused the material on record including case laws relied upon. We have observed that the assessee is a company engaged in the business of manufacturing of equipments / machineries which are used by Pharmaceuticals and allied industries. The AO has made additions on the grounds that the gross profit margin earned during the year being lower than the gross profit margin of immediately preceding year and the additions were made to the income of the assessee by applying the gross profit margin of 31.82% to the sales of the previous year relevant to the assessment year under appeal , based on gross profit margin earned during the preceding year. The assessee contended that in respect of some items, the sale price to outside parties is in .....

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..... s at cost owing to assessee merger , the same were accepted of being sold at cost by learned CIT(A) and consequent relief was given by learned CIT(A) in the first appellate proceedings vide orders dated 23.12.2013 and the Revenue is not in appeal before the Tribunal against the said relief granted by the learned CIT(A) . It was also observed by the AO while framing assessment that the assessee booked sales commission of ₹ 99 lacs on sales of ₹ 19.01 crores during the previous year relevant to the impugned assessment year, while in the immediately preceding assessment year the sales commission was only ₹ 1.08 lacs on sales of ₹ 20.58 crores. A separate addition was made by the AO of ₹ 99 lacs in the assessment o .....

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..... be applied to the sales of the instant assessment year under appeal. There is no averments that there is an deliberate attempt to inflate cost of material or other expenses on the part of the assessee or to suppress sale price of products sold by the assessee. The allegations of the AO were duly met by the assessee in remand report/appellate proceedings as set out above. The Revenue is not in appeal before the Tribunal with respect to the relief s granted by the learned CIT(A). Our view is consistent with the decision of Hon ble Delhi High Court in the case of CIT v. Smt Poonam Rani (2010) 326 ITR 223 (Del.HC). In our considered view, the additions made by the learned AO as sustained/confirmed by the learned CIT(A) to the tune of ₹ 1 .....

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