2017 (3) TMI 662

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....lacs. 2. That the authorities below further erred in disallowing out of telephone expenses, conveyance expenses, repairs and maint. Expenses, car insurance and depreciation on car amounting to Rs. 27,585/- being the 10% of the total claim. 2.1 Apropos Ground No. 1 of the, the facts as emerges from the order of the ld. CIT(A) is as under:- ''2.2 I have perused the facts of the case, the assessment order and the submissions of the appellant. As noted by the Assessing Officer during the year the gross profit has been shown at 10.82% compared to 10.80% in the previous year. The Assessing Officer noted that the assessee has not maintained stock register or the quantitative and qualitative details of opening and closing stock....

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....eal is partly allowed. 2.2 Apropos Ground No. 2 of the assessee, the facts as emerges from the order of the ld. CIT(A) is as under:- ''3.2 I have perused the facts of the case, the assessment order and the submissions of the appellant. The disallowance has been made as the expenditure were not fully vouched as well as the personal element. The disallowance is sustained at 10% of the expenditure instead of 20%. The ground of appeal is partly allowed.'' 2.3 I have heard the rival contentions and perused the materials available on record. As regards Ground No. 1 of the assessee, brief facts of the case are that the assessee derives income from business of trading of Timber & Plywood. The trading results shown by the assessee for....

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....the trading results of the assessee were not accepted by the AO in the absence of stock register. The AO thus made a lumpsum trading addition of Rs. 3.00 lacs in the hands of the assessee by rejecting the books of account of the assessee u/s 145(3) of the Act and added the sum of Rs. 3.00 lacs to the income of the assessee. In first appeal, the ld. CIT(A) had reduced the trading addition to Rs. 2.00 lacs. In appeal before this Bench, it is noted that the gross profit rate of the assessee is better than preceding year and the turnover is also higher for the year under consideration. However, the assessee is not maintaining the proper books of account with regard to stock. Therefore, to plug the leakage of revenue, certain disallowance is ine....