2012 (3) TMI 572

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....peal by assessee against the order of ld. CIT (A) relating to assessment year 2006-07. 2. Ground nos. 1 to 3 are against upholding the estimation of sale of Rs. 1.10 crore against sale shown by assessee at Rs. 1,04,56,360/-. The provisions of section 145 were applied while making the estimation of sale and against GP rate declared by assessee at 13.28%. The ld. CIT (A) upheld the rate of 14.20%. ....

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....rcumstances, the Assessing Officer applied provisions of section 145 and estimated the sale at Rs. 1.30 crores against sales shown by assessee. The Assessing Officer further noted that GP rate in immediately preceding year was 14.2% whereas assessee has shown GP rate at 13.28% during the year under consideration. Accordingly he applied GP rate at 15%. 4. Submissions made before Assessing Officer ....

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....he material on record, the ld. CIT (A) found that estimation of sales is on higher side. Therefore, he reduced the estimated sale to Rs. 1.10 crore and in respect of GP rate applied by Assessing Officer @ 15%. The ld. CIT (A) was of the view that in earlier year GP rate shown by assessee at 14.2%, therefore, it will be reasonable to apply GP rate at 14.2%. In this way, the addition of Rs. 1,72,690....

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....e of the view that if an addition of Rs. 50,000/- is sustained in trading account that will meet the ends of justice, which will take care of decline in GP and other discrepancies found. We order accordingly. 7. The remaining issue is against upholding enhancement of household expenses from Rs. 40,000/- to Rs. 78,000/-. 8. During the assessment proceedings, the Assessing Officer noted that asses....