TaxTMI 
TaxTMI 
2012 (11) TMI 350
X X X X Extracts X X X X
X X X X Extracts X X X X
.... convenience. ITA No. 1160/Ahd/2009 2. The effective grounds of Revenue's appeal are as under: 1(a) On the facts and in the circumstances of the case and in law, the Ld. CIT(A) erred in deleting the G.P. addition of Rs.23,86,074/-. 1(b) The CIT(A) failed to appreciate that the assessing officer while dealing the issue had clearly established that the books of account of the assessee are not reliable and accordingly they were rejected in accordance with the provisions of section 145A of the Act. The assessee failed to produce the purchase and sale bills, pre survey and post survey figures of GP, evidence of increase in furnace oil and LDO prices etc. Thus, the assessee failed to justify the fall in GP of 6.1% as compared to the immediate....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e. Therefore, he estimated the GP rate @ 23.03% as against 16.04% and made the addition of Rs.23,86,074. The assessee was before the CIT(A) who had deleted the addition and observed that the appellant had submitted detailed reply before the A.O. as well as before him. The appellant also relied on various case laws before him, particularly, CIT vs. Sanjay Oil Cake Industries reported in 197 CTR 520 (Guj.) wherein the facts of the case were identical to the assessee's case. It has been held that when appellant has been maintaining records, without pointing out any omission or suppression in appellant's books, no addition could be made. He further relied upon Hon'ble Punjab and Haryana High Court decision in case of Surinder Kumar Charanjit K....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ufacturing, details of production and sales register were maintained by the assessee by which the stock position could be easily arrived. All the sale and purchase bills were produced before the ld. A.O. at the time of assessment proceeding. The copy of the letter was produced before the ld. CIT(A) who has taken remand report and rejoinder thereof which prove that the sale and purchase bills were produced for verification before the ld. A.O. the pre and post survey figures of GP rate were given to the A.O. at the time of assessment proceeding. There was an increase in furnace oil and LDO price which were produced before the A.O. during the course of assessment proceeding. The details of raw material in immediate preceding year and the GP ra....
X X X X Extracts X X X X
X X X X Extracts X X X X
....eding. The ld. A.O. was right in adding Rs.7,65,000/- in the income of the assessee. From the other side, ld. Counsel for the appellant contended that the disclosure of Rs.7,65,000/- had already made part of income. Therefore, CIT(A) had rightly allowed the appeal in favour of the assessee. He also drawn our attention on page nos. 85 and 16 wherein the discrepancy in stock of Rs.7,65,000/- had been included in the closing stock and credited in the P&L account. Thus, he prayed to confirm the order of the CIT(A). 9. We have perused the order of the authorities below and gone through the paper book on page nos. 85 and 16. The appellant had been added discrepancy in stock in the income of the year under consideration by crediting the discrep....
X X X X Extracts X X X X
X X X X Extracts X X X X
....tion on page no. 84 of the paper book, where there is an item sale of boxes at Rs.2,05,26,681/- in which scrap amount of Rs.3,50,000/- has been included. Thus, he requested to confirm the order of the CIT(A). 12. We have gone through the order of the authorities below and paper book. At page no.84, the assessee has included scrap sale in sale of boxes and made part of P&L account of the year under consideration. Thus, we do not find any reason to intervene in the order of the CIT(A). The Revenue appeal is dismissed on this ground. 13. In result, the Revenue's appeal is dismissed. C.O. No.88/Ahd/2009 14. The grounds of Assessee's C.O. are as under: "1. The appeal filed by the Department with regard to deletion by learned C.I.T.(A) of th....