TaxTMI 
TaxTMI 
2017 (3) TMI 889
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....the Act". 2. We come to the relevant facts first. This assessee is a glass manufacturer. It declared gross profits of Rs. 2056.11lacs @42.99% on gross sales of Rs. 4782.97 lacs in relevant previous year as against that @45.77% in the immediate preceding assessment year. The Assessing Officer sought to know about reason of this 2.78% decline in gross profit. The assessee attributed the same to increase in purchase price of raw material followed by a declining trend in average sale price of the finished goods. It specifically quoted the latter head to have come down from Rs. 62 to Rs. 56/-. The Assessing Officer prepared a tabulation chart of the above two assessment years pertaining to assessee's raw materials consumption in his assessment ....
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....involving GP @40.90% with overall yield of 70.54%. 4. It is evident that the Revenue preferred ITA No.2022/Ahd/2010 before this tribunal. A co-ordinate bench's order dated 25.07.2013 restored the above quantum addition as follows: "20. We also find that this issue has been discussed by the AO in para 23 of the assessment order on page nos.12 to 16 thereof. The AO has noted that the GP rate was 45.77% in A.Y.1996-97 as compared to GP rate of only 42.99% in the present year, and hence, there is decline of 2.78% in the GP of the present year, as compared to the preceding year. To explain this fall in GP, it was submitted by the assessee, before the AO that the sale price has gone down from Rs. 62/- in the preceding year to Rs. 56/- in the pr....
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.... to sales and has noted that consumption of raw material to sales in the present year is 26%, as compared to 20% in the preceding year. The AO has also noted that there is a significant fall in the cost of power and fuel, which has gone down to 11.97% in the present year, as compared to 13.94% in the preceding year, and therefore, even if there is some increase in some expenses, the same is offset by such decline in the cost of power and fuel. Even after such analysis, the AO has adopted GP rate of 45% in the present year, as against 45.77% of GP in the preceding year. 21. From the above discussion, we find that the GP addition was made by the AO after examining all the aspects very carefully, but the learned CIT(A) has deleted such addit....
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....s gross profits at much lower rates of 40.90% have been assessed in assessment year 2001-02, very high rate of 50.25% in assessment year 2007-08 and again a very low figure of 32.59% in assessment year 2010-11; respectively as disclosed and accepted in scrutiny assessments. We refer to relevant facts narrated in preceding paragraphs that the assessee had sought to justify its decline in gross profit as compared to the preceding assessment year by placing on record all necessary details which formed the necessary basis for the Assessing Officer to reject its book and arrive at estimated GP @45%. It has also come on record that he examined all the raw material items, their purchase prices, consumption as well as all other heads of expenses st....