2016 (5) TMI 347

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....ared gross profit rate of 8.80%. 2.1 At the outset of the hearing, the Bench observed that the appeal of the assessee is time barred by limitation of 40 days for which the assessee has filed an application for condonation of delay in filing the appeal in time praying therein that due to his continuous illness for a period of last two months, he could not contact his ld. AR Shri B.L. Gupta. To this effect, the assessee has filed the doctor certificate alongwith an affidavit that due to his continuous illness for the last two months, he could not contact his ld. AR for filing the appeal in time. Thus the delay made in filing the appeal may be condoned. 2.2 The ld. DR vehemently opposed the condonation application of the assessee as to delay....

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....ity before law demands that all litigants, including the State as a litigant, are accorded the same treatment and the law is administered in an evenhanded manner. There is no warrant for according a step-motherly treatment when the State is the applicant praying for condonation of delay. "When substantial justice and technical considerations are pitted against each other, the cause of substantial justice deserves to be preferred, for the other side cannot claim to have a vested right in injustice being done because of a non-deliberate delay." Thus, in view of the deliberations of Hon'ble Apex Court in the case of Collector , Land Acquisition vs. Mst. Katiji and Others (supra), the delay is condoned 3.1 Now we take up the appeal....

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....w material was shown considerably less than the cost claimed by the assessee before the Department. The AO observed that the assessee is not regularly maintaining the stock register particularly of principal raw material in order to avoid proper verification of the records. In view of these facts, the AO rejected the books of account of the assessee by invoking the provisions of Section 145(3) of the Act and estimated the gross profit rate at 10% which resulted into a trading addition of Rs. 61,00,817/-. 3.2 Being aggrieved, the assessee carried the matter before the ld. CIT(A) who confirmed the trading addition of Rs. 7,90,355/- by observing as under:- ''4.3 I have carefully perused the order of the AO and submissions of the A.R. and do....

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....ing stock, therefore, in our view, the invocation of provisions of section 145(3) was correct. Now the question arises is decline in GP rate. It is seen that turnover of the assessee has been increased substantially. In immediately preceding year, the turnover of the assessee was Rs. 20.21 crores whereas in this year turnover is Rs. 36.04 crores. The line of business of the assessee is production of Transformers. It is further seen that major component of production of transformers were Aluminum which is 25% and CRGO limination which is 38% of the total raw material, and this was the major factor for increase in raw material cost. The price increase in CRGO was 79.66% and in Aluminum there was increase of 25.22% whereas the increase in sale....