TMI Blog2019 (12) TMI 1614X X X X Extracts X X X X X X X X Extracts X X X X ..... to Rs.38 crore. Similarly, the A.Y. 2012-13, the GP dropped from 2.19% to 1.41% as the turnover increased from 10 crore to 41 crore. Further, the AO has not found any defects in the maintenance of the books of account, hence the GP of addition made by the AO was rightly deleted by the ld. CIT(A). In the light of above discussion of the finding of the ld. CIT(A), we find no infirmity in the order of the ld. CIT(A). Hence, the appeal of the Revenue is accordingly dismissed. - I.T.A No. 2539/AHD/2014 - - - Dated:- 5-12-2019 - Shri Sandeep Gosain, Judicial Member And Shri O.P. Meena, Accountant Member For the Revenue : Shri O.P. Singh Ld. CIT (DR). For the Assessee : None. ORDER PER O.P.MEENA, AM : 1. This appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e total turnover in respect of manufacturing activity. Similarly, GP rate was adopted at 8.44% being the average of last three years of the total turnover in respect of trading activity. Accordingly, this is regulated in the total addition of Rs.4,87,61,536/-. 5. Being aggrieved, the assessee carried the matter before the ld. CIT(A). Wherein, it was contended that the books of account are supported by bills and vouchers. The quantitative records have been maintained and audited by Excise authority, and no discrepancy was noticed by the AO. It was further explained that the details of stock register on books of account were furnished before the AO. With regard to fall in GP rate, it was submitted that the result of preceding year is not c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ver from the previous year. Accordingly, the addition made by the AO on account of GP was also deleted. 6. Being aggrieved, the Revenue filed this appeal before this Tribunal. The ld. CIT(DR) relying on the order of the AO submitted that the assessee has not furnished requisite details, therefore AO was justified in rejecting the books of account and there was an abnormal fall in GP rate as compared last year, hence that GP rate has been rightly made. 7. No one appeared from the side of the assessee. 8. We have heard the ld. CIT(DR) and perused the relevant material available on record. We find that ld.CIT(A) has given his finding that the books of account are duly maintained and presented before the AO during the course of assessm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ant has filed the copy of letter dated 08.03.2013, submitted to AO during assessment proceedings, wherein at Page-8 of Exhibit-A, appellant has clearly mentioned that complete books of account, along with excise records, were produced before AO. On the same page, it is also mentioned that the appellant maintained quantitative records of goods, both manufacturing and trading, and such records have been audited by excise authorities also and no discrepancy was found by them. It is also submitted on the same page that purchases book and sales book with all the purchase/sale bills and evidence have been produced along with quantitative details. Similarly, in the same letter vide para 2.4, appellant has filed the complete details of all the expe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t be supported. On the other hand, appellant has duly explained the reasons for fall in GP in comparison to earlier years. It has mentioned that during the year the turnover has increased from 38 crore to 56 crore and due to which GP rate has gone down. As per appellant, in the earlier proceeding year i.e. 2009-10 also GP had fallen by almost 9.10% in comparison to A.Y. 2008-09 as in that year also turnover had increased from 14 crore to 38 crore. Similarly, in A.Y. 2012-13, GP dropped from 2.19% to 1.41% as the turnover increased from 10 crore to 41 crore. As explained by appellant, the trend in it's business line is to keep growing and do not hold the trading goods on hand for longer period and sell them in market at prevailing price ..... X X X X Extracts X X X X X X X X Extracts X X X X
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