TaxTMI 
TaxTMI 
2013 (7) TMI 41
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.... Per G. D. Agrawal, VP : This appeal by the Revenue is directed against the order of learned CIT(A), Ghaziabad dated 2nd May, 2012 for the AY 2009-10. 2. The Revenue has raised the following grounds:- "1. That the learned CIT(A) has erred in law and on facts in deleting the addition of Rs.18,69,895/- on the ground that the G.P. rate was better than the assessment year 2008-09 irrespecti....
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....ee derives income from salary, income from house property, income from purchase and sale of shares as well as income from purchase and sale of paintings and books. The Assessing Officer has noticed that during the year under consideration, the assessee has shown the sales of paintings and books at Rs. 42,54,805/- on which gross profit of Rs. 2,57,505/- was disclosed and a net profit of Rs. 1,03,05....
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....l sales of Rs.25,18,368/-, while this year he has declared a much better G.P. of 25.92% on total sales of Rs.42,54,805/-. Thus the profit results declared by the assessee are on much better footing this year. Secondly, the addition cannot be made on pure conjectures. No doubt profit in the field of painting can range from 100 to 1000% or may be even more. But that does not give A.O. the liberty....
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....e learned CIT(A) has recorded the finding that in assessee's own case, last year, the gross profit disclosed was 14.78% while the gross profit in the year under consideration was better. Further, the question of application of GP rate can arise only on the rejection of books of account as per Section 145(3). For rejection of books of account, the Assessing Officer has to record the finding that he....