TaxTMI 
TaxTMI 
2014 (3) TMI 586
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....hout pointing out any defects and merely because of showing low G.P. Ratio thereby grossly violating the provisions of S. 145 of the act? B. Whether on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was right in law in reversing the order of the Ld. CIT (A) and upholding the order of the AO in sustaining the addition u/s 36 (i)(va) of Rs.50,950/on account of the late payment of employees contribution to provident fund." 2. Question A pertains to the addition made by the Assessing Officer of Rs.96.22 (rounded off) on account of suppression of gross profit declared by the assessee. The said addition was challenged by the assessee before the CIT (Appeals) who deleted the said addition. On further appeal....
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.... fall in GP, it was submitted by the assessee, before the AO that the sale price has gone down from Rs.62/in the preceding year to Rs.56/in the present year. Thereafter, the AO has noted down yield percentage of various raw materials of the present year, as well as of the preceding year. From this chart of yield percentage of various rawmaterial in the present year and earlier year, we find that consumption of various raw materials to the extent of nine raw materials out of total 12 raw materials, have gone up in the present year. Such raw materials are, silica sand, dolomite lumps, lime stone, sodium sulphate, activated carbon, soda ash and cullets. Apart from this, there are two items of raw materials, for which there was no consumption i....
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...., we find that the GP addition was made by the AO after examining all the aspects very carefully, but the learned CIT(A) has deleted such addition on simple basis that since there is decrease in average sale price, fall in GP is explained. We, therefore, do not find any reasonable basis in the order of the CIT(A) for deleting this addition, and therefore, set aside the order of the learned CIT(A) on this issued, and restore that of the AO. This ground of the Revenue is allowed." 3. Counsel for the appellant vehemently contended that the Tribunal has committed serious error in reversing the order of the CIT (Appeals). Firstly, since there was no error in the books of the accounts of the assessee. Secondly, the CIT (Appeals) had given coge....
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....umption of certain raw materials. The Assessing Officer had also recorded that there was defect in average sale price as compared to the earlier year. He also noticed that average price of the raw materials is also gone down. In case of certain raw materials, considering such facts the Assessing Officer has worked the GP rate, which was comparable to what is recorded in the previous year. On this finding of facts which the Tribunal has confirmed in the impugned judgment, in our opinion, there is no question of law arises. The decision in the case of Symphony Comfort System Ltd. (supra) arises out of the appeal against the judgment of the Tribunal in which it was held that the Assessing Officer was not justified in relation to the books of a....