2017 (2) TMI 1083

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....has gravely erred in sustaining trading addition of Rs. 2,59,117/- made by the AO by enhancing the G.P. rate of the assessee from 9.25% as per books of account to 10.51% by rejecting the book results. (iia) That while sustaining the above addition the Ld. CIT(A) ignored that addition could not be sustained merely due to non maintenance of stock register ignoring the audited accounts, progressive G.P. rate from earlier year and no suppression in sales or purchases found by the AO. (iii) That in the alternative, the Ld. CIT(A) has gravely erred in accepting the high G.P. rate of 10.51% adopted by the AO as shown by some other trader ignoring the different items traded by that party and the lower G.P. rate shown by a concern trading in s....

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....ate of 9.2% on sale of 2.14 Crores. It is submitted that due to hard & keen competition in our line of business our sales had reduced a little but with efforts and hard work we were able to earn a better GP rate than the earlier year. All the purchases and sales are fully vouched & recorded in the books of account maintained in the normal course of business. The trading results are progressive. For justification of our trading results as desired please find enclosed herewith details of purchase and sale of few items dealt with by us. Photostat copies of the relevant purchase/sale bills are also enclosed." The assessee also attached a list showing G.P rate of 11 items as per which the gross profit rate was in the range of 2.78% to 8.96%. T....

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....sults of Ms. Jagat Singh & Sons, and had calculated G.P rate 10.51% without confronting the trading results to the assessee. It was submitted that said concern was not dealing in the same items in which the assessee was dealing. It was submitted that another firm M/s SH Traders, Jalandhar which was situated next door to assesee's shop and was dealing in similar items had declared G.P rate of 9%. 7. The Ld. DR, on the other hand, heavily placed his reliance on the order of authorities below. 8. We have heard the rival parties and have gone through the material placed on record. In the present case, we find that the case law relied on by assessee of Amritsar Bench in the case of M/s M.R. Kalia Industries is not applicable to the facts and c....