TaxTMI 
TaxTMI 
TaxTMI 
2015 (12) TMI 136
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....gister of raw material consumed was kept by assessee which rendered the account books defective and unreliable." 2. The assessee derived income from manufacturing and export of gems, stones and jewellery etc. The assessee filed its return on 13/10/2010 declaring total income of Rs. 48,44,449/-. The case was scrutinized U/s 143(3) of the Income Tax Act, 1961 (hereinafter referred as the Act). The assessee filed details required by the Assessing Officer i.e. produced books of account and vouchers etc. which were examined on test check by the Assessing Officer. The ld Assessing Officer observed that the assessee had shown following business results from A.Y. 2007-08 to A.Y. 2010-11, which is as under:- A.Y. Sales Rs. G.P. Rs. G.P. Rate ....
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....rt in form No. 3CD the auditors have made remarks in this regard. The assessee was asked to give the details of yield percentage but the assessee admitted that there was no possibility to give these details on the basis of books of account maintained by it. Similarly he also found large variation in cut stones. The assessee had not shown uniform or compatible production or re-cut loss which could justify the correctness and truthfulness of the books of account. Similarly the rejection of goods also not verifiable from the record, therefore, the Assessing Officer gave a notice as to why books of account should not be rejected U/s 145(3) of the Act and also proposed to apply 18% gross profit rate as applied in the A.Y. 2008-09. The assessee a....
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....- was added in the income of the assessee. 3. Being aggrieved by the order of the Assessing Officer, the assessee carried the matter before the ld CIT(A), who had deleted the addition by observing that the ld Assessing Officer applied G.P. rate on the basis of assessment made in A.Y. 2008-09 as the ld predecessor vide order dated 12/12/2011 decided the appeal for A.Y. 2008-09, in which the trading addition made by the Assessing Officer was deleted. He has reproduced the finding of the ld CIT(A) for A.Y. 2008-09 on pages Nos. 11 to 14 of the order. He further held that the ld Assessing Officer had made certain theoretical observations for rejecting the books of account. The Assessing Officer had failed to pinpoint any material defect in the....
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..... rate on the basis of finding given for A.Y. 2008-09, which has been deleted by the ld CIT(A) and confirmed by the Hon'ble ITAT. Therefore, he allowed the appeal. 4. Now the revenue is in appeal before us. The ld DR has vehemently supported the order of the Assessing Officer. At the outset, the ld AR of the assessee has reiterated the arguments made before the ld CIT(A). He further argued that the issue involved in appeal is covered in favour of the assessee for appeal order in A.Y.2008-09 passed by the Hon'ble Bench in the case of assessee company vide order dated 28/08/2014 in ITA No. 220/JP/2012. The Hon'ble Bench in the case of assessee for A.Y. 2002-03 and 2007-08 had referred the said appeal order. Therefore, he prayed to decide the....
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....e to continuous increase in gold price and other metal increases upto 4.27% which also effected G.P. rate (comparative statement of raw material cost is submitted). Thus the fall in G.P. rate of this year in comparison to exceptional results for A.Y. 2009-10 are fully explained and the same is higher as compared to all the earlier years. He further argued that the ld Assessing Officer was wrong in comparing the results of this year only with A.Y. 2009-10 without examining the history of the case while the turnover of assessee company for A.Y. 2009-10 was lowest. The history of declared results for all past years will show that in this A.Y. 2010-11, G.P. rate is higher from all past years except in A.Y. 2009-10. The turnover of A.Y.(s) 2002-....