2009 (1) TMI 854

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....ferred have been partly allowed and the order dt. 26th Aug., 1999 passed by the Commissioner of the Income-tax (Appeals) [in short 'the CIT(A)' hereinafter], reducing the estimated sales, has been confirmed and the GP rate determined by the CIT(A) as 25 per cent has been enhanced to 25.95 per cent. 2. The relevant facts in nutshell are that the respondent assessee is engaged in manufacturing of marbles slabs out of the purchased marble blocks. During the relevant assessment year, it declared total sales of Rs. 50,87,055 and job charges of Rs. 2,27,873. The return filed by the assessee was processed by the Assessing Officer (in short 'the AO' hereinafter) under s. 143(1)(a) of the Act of 1961. The AO found that the purchas....

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....CIT(A) while determining the estimated sales at Rs. 55,00,000 including all receipts held that it will be reasonable to apply GP rate of 25 per cent on estimated sales. 4. Aggrieved by the aforesaid order passed by the learned CIT(A), Revenue as well as the respondent assessee preferred appeals. The cross-objections were filed by the respondent assessee in the appeal filed by the Revenue. By the order impugned, the learned Tribunal has upheld the order passed by the CIT(A) restricting the enhanced sales to Rs. 55,00,000, however, in view of the fact that the assessee had declared GP rate of 25.95 per cent in the asst. yr. 1995-96, the learned Tribunal held that the same GP rate should be applied to the assessment year in question as well....

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....e circumstances of the case, no substantial question of law arises in the matter and the order passed by the learned Tribunal confirming the order passed by the CIT(A) with the modification in regard to the GP rate to be applied, does not warrant interference by this Court. 8. We have considered the rival submissions and perused the impugned order and other material available on record. 9. It is not the law that books of account of assessee having been rejected as unreliable under s. 145(3) of the Act of 1961, the sales returned by the assessee must necessarily be rejected and such sales should be estimated at higher figure than returned by the assessee. Even after, the rejection of the books of account the AO is under obligation to d....