2015 (12) TMI 555

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....of stock register, while in fact assessee has maintained the details of opening stock, production, sales and closing stock of raw material as well as finished goods, which was not considered by the AO as well as ld. CIT(A), hence invoking of provisions u/s 145(3) deserves to be quashed. 2. On the facts and in the circumstances of the case, the ld. CIT(A) has grossly erred in confirming application of gross profit rate of 2.58% as against the gross profit rate of 1.19% declared by the assessee in M/s. S.R. Presstress Industries resulting into trading addition of Rs. 2,94,528/- arbitrarily, thus the addition so sustained deserves to be deleted. 3. On the facts and in the circumstances of the case, the ld. CIT(A) has grossly erred in con....

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....nses and wages at Rs. 35,917/- 2.2 The ld. Counsel for the assessee contends that the assessee is a proprietor of following three firms namely (i) M/s. S.R. Presstress Industries. (ii) M/s. Mantri Industries (iii) M/s. Mantri Pole Udyog An addition of Rs. 2,94,538/- and Rs. 60,418/- was made by Ld. AO by applying G.P. rate of 2.58% in case of M/S S.R. Presstress Industries, 6.32% in M/s Mantri Pole Udyog as against the G.P. rate of 1.19% and 5.80% declared by the assessee in case of S.R. Prestress Industries and Mantri Pole Udyog, respectively. 2.3 Ld. Counsel contends that the Ld. AO has erroneously rejected books of accounts on the reason that assessee has not maintained any stock and manufacturing records. Assessee book....

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....hoes of the businessman to look into the necessity and purpose, thus the expenditure being for business purposes, the disallowance deserves to be allowed. 2.6 As regards to payment of wages through self made vouchers, it is submitted that during the course of assessment proceedings assessee has filed every precise details regarding the wages paid to locally available skilled laborers' for work done for manufacturing of PCC poles. The complete details with names and payment vouchers acknowledged by them were also furnished. 2.7 Ld. CIT(A) after considering the facts has reduced the disallowance to 5% without specifying as to which of the expenses claimed is not verifiable thus it is humbly prayed that disallowances as upheld at 5% dese....