TaxTMI 
TaxTMI 
2004 (5) TMI 586
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....loth House one dated 12-8-1996 and the other dated 11-9-1997 relevant to the assessment years 1993-94 and 1994-95 respectively. Since these belong to one group and involve identical facts and issues, therefore, are being disposed of by a single order for the sake of convenience. 2. In the case of M/s. Rakesh Binny Show Room, trading addition of ₹ 6,75,588 was made by the Assessing Officer while applying profit rate of 39.67% as against 11.45% shown by the assessee against which the assessee preferred appeals and while objecting to such addition, it was pleaded that the Assessing Officer has made the addition by applying G.P. rate of 39.67 per cent merely on presumption and without any basis. It was also submitted that applications of....
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....-)249 Mtrs. The purchases have been found to be in excess of sales and after taking into account the value of opening and closing stock the Assessing Officer computed the difference in value at ₹ 6,75,588 as per the details given at page 3 of the assessment order. The Assessing Officer also found that the assessee has shown opening stock at ₹ 9,24,310 and after adding the difference in the sales and purchases the Assessnig Officer found that the closing stock with the assessee shuold have been at ₹ 15,99,898 against the closing stock of ₹ 9,41,450 shown by the assessee leading, to difference of ₹ 6,75,588. In view of these facts the Assessing Officer came to the conclusion that the assessee has made the sales ....
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....and sales throughout the year have been taken into account after allowing adjustment of opening and closing stock. The Assessing Officer also rejected the assessee's contention regarding the value of opening stock and closing stock is the same. The Assessing Officer also pointed out that the cut pieces which are generated during the course of sales are also being sold out throughout the year and, therefore, were also adjusted in the sales. So by making his own trading account, the Assessing Officer made the addition against which the assessee preferred appeal and submitted that in this line of business it is not possible to maintain complete stock tally. 4. The learned CIT(A) while considering and accepting the plea of the assessee has....
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....asis for the addition. Under these circumstances, the addition made by the Assessing Officer cannot be sustained and, therefore, the same is deleted." 5. Against which the Department is in appeal and while relying upon the order of the Assessing Officer, it was pleaded for setting aside the order of the learned CIT(A) and restoring that of the Assessing Officer whereas the learned counsel for the assessee relied upon the basis and the reasoning as given by the learned CIT(A), it was pleaded for confirmation of the impugned order. It was also pleaded that the same ITO has accepted the trading results of the assessee for all subsequent years whereas the G.P. rate was shown 11.45 per cent to 11.59 per cent and earlier to the year under c....