TaxTMI 
TaxTMI 
2015 (4) TMI 435
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.... for AY 2006-07. The Revenue has raised the following grounds of appeal:- 1. The Ld.Commissioner of Income-Tax (Appeals)-XIV, Ahmedabad has erred in law and on facts in restricting the addition made to the extent of Rs. 14,78,543/- as against the addition of Rs. 50,00,000/- made by the Assessing Officer on account of G.P. 2. The Ld.Commissioner of Income-Tax (Appeals)-XIV, Ahmedabad has erred in law and on facts in deleting the disallowance of Rs. 2,08,802/- made by the Assessing Officer on account of commission expenses. 3. The Ld.Commissioner of Income-tax(Appeals)-XIV, Ahmedabad has erred in law and on facts in admitting additional evidences in violation of Rule 46A. 4. On the facts and in the circumstances of the case, the Ld.Commissioner of Income-Tax(Appeals)-XIV, Ahmedabad ought to have upheld the order of the Assessing Officer. 5. It is therefore, prayed that the order of the Ld.Commissioner of Income-Tax (Appeals)-XIV, Ahmedabad may be set-aside and that of the order of the Assessing Officer be restored. 3.1. Briefly stated facts are that the case of the assessee was picked up for scrutiny assessment and the assessment u/s.143(3) of the Income Tax Act,196....
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....uments before the undersigned that the A, O. was not justified in doing the same. The main points of various submissions made by him during the course of appellate proceedings are summarized as under: (i) The appellant has submitted quantify details of each items purchased and sold by him. (ii) The quantity and value wise comparison of previous year with supporting evidence has also been submitted. (iii) Copies of all purchase bills and sale bills have been furnished. (iv) The appellant was dealing in fourteen different items out of which the main items were cables and wires, Insulated scrap and copper scrap. The profit margin in each item of scrap is different. (v) There is a huge increase in turnover as compared to previous year and, therefore, the G. P. rate was bound to go down. The turnover this year was Rs. 10.15 crore as against Rs. 2.16 crore in the last year. (vi) Since the appellant has dealt in different items of scrap, this year the G. P. ratio was not comparable with the preceding year. (vii) The appellant made sales on consignment to consignment basis, and therefore, yielded low G, P. (viii) The G. P, rate was higher in A. Y. 2005-06 (13.....
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....t varieties of scrap submitted by the appellant during the course of assessment proceedings. Any addition on lumpsum basis by rejecting the books of accounts defeats the very purpose of rejecting the books of accounts. In this case, sufficient information in respect of items of purchase and sale has been submitted by the appellant and, therefore, the addition should be based on the specific information. As is clear from the above table, that the main item which has resulted in decline of G. P, for the current year is insulated scrap. The submission of the appellant that the G, P. rate should be taken on LOT to LOT basis as it gives a clear picture of the profit margin of the appellant has some force. However, the comparison of the G. P. rate of two years cannot be made on LOT to LOT basis as it will not give proper result. There is a force in the appellant's submission that the quality of scrap varies from year to year and it cannot be strictly compared with the earlier years and on account of huge increase in turnover, the G, P. rate cannot be as high as in the previous year. It was also pointed out by the appellant that there was high profit margin in one transaction. As per ....
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.... given a finding on fact, which reads as under:- "4.4 (b) Disallowance Commission expenses: The A. O. had made an addition of Rs. 2,08,802/- as the appellant could not furnish complete name and address of the persons to whom above commission was paid. It has been submitted by the appellant that the TDS has been made u/s. 194H and copies of Form 60A was also filed by him before the A. O. He has given complete details mentioning the Address, PAN and the amount of commission paid to 3 persons. The A. O. in his remand report has not given any comments on the information submitted by the appellant. Since, the appellant has given necessary details for verification of commission expenses such as name and address of the person, PAN, confirmation of the person as well as Form 16A which was issued to the person to whom the commission was paid, the A. O. was not justified in disallowing the commission. The addition made is accordingly deleted." 7.1. The above finding on fact is not controverted by the Revenue by placing any material on record. Therefore, we do not see any reason to interfere with the order of the ld.CIT(A), same is hereby upheld. Thus, this ground Revenue's appeal is....