2016 (7) TMI 674

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....Appeal under Section 260A of the Income Tax Act, 1961 (the Act) impugns the order dated 19th July, 2013 passed by the Income Tax Appellate Tribunal (the Tribunal). The impugned order is in respect of Assessment Year 2005-06. 2. In this appeal, the Revenue only presses the following question of law for our consideration : "(i) Whether on the facts and in the circumstances of the case an....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....extent of rejection of books of accounts and estimating the gross profit ratio at 10%. However, the addition of Rs. 1 crore on account of valuation of closing stockwork in progress was rejected. 5. Being aggrieved, the respondent assessee carried the issue in appeal to the Tribunal. The impugned order of the Tribunal in respect of rejection of books of accounts records a finding that the Assess....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....while in the subject assessment year i.e. for A.Y. 200506 was Rs. 27.07 crores and fall in the gross profit was attributable to increased competition resulting in prices of its final product be stagnant coupled with increase in cost of purchases. 7. The grievance of the Revenue before us is that the impugned order ought to have upheld the rejection of respondent assessee's books of accounts....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....sing stock of work in progress is not sustainable. This for the reason that the CIT(A) had in his order deleted the addition made on the above account and the Revenue has accepted it. This is evident from the fact that no appeal from it has been preferred by the Revenue to the CIT(A). So far as the other basis viz. fall in gross profit ratio is concerned, we find that the same is found by the Trib....