2017 (3) TMI 1300

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....Profit amounting to Rs. 419175. The Ld. CIT (Appeals) has compared Gross profit Ratio without sorting abnormal/accidental/casual income of Rs. 250000/- in AY 2008-09, received on account of purchase of Printing machinery as payments towards as paper/chemical discount for test checking printing on new machine. The Ld. CIT (Appeals) has wrongly calculated Gross profit Ratio @ 21.49% by not deducting trade discount of Rs. 419175 from Purchases for Ay 2009-10 and thereby inflating purchase and thus Lowering Gross profit and comparing it with Gross Profit Ratio of AY 2008-09 by deducting trade discount of Rs. 305827 from purchase which is absurd. On the facts and circumstances of case the addition of Rs. 419175 on account of Low Gross Profit is ....

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....0,000/- Recd. in A.Y. 2008-09 is special discount received from Noritsu Koki Ltd. (Machinery purchase Party) which is abnormal income (Indirect Income) and which shown as Direct Income in Audit Report due to which the Gross Profit ratio has been seen on higher side @ 30.46% in A.Y. 2008-09 which is not true. The Calculation of Gross Profit Ratio on comparative basis while nullifying the abnormalities is shown. : The contention of the AR of the assessee which is mentioned in his reply dtd. 16.12.2011, is incorrect and self serving as well as not acceptable. As per the audit report - Annexure -I, Part-A, clearly shows that the Gross Profit is decreased by 3.15% compared to the immediate preceding year. If the said debit note amount of Rs. 4....

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....d as follows :- "6.1 I have considered the assessment order as well as the submissions of the appellant. The Grounds of appeal - Ground No. 1 pertains to addition of account of low G.P. of Rs. 4,19,175-. The appellant during the appellate proceedings made the same submissions regarding the G.P. rate as made before the Assessing Officer. The details filed show that the G.P. has decreased by 3.15% in comparison to immediate preceding year. The Audit Report in the 3CD Report, Annexure-1, Part-A has shown a fall of G.P. of 3.15%. The appellant has not brought on record any reason or explanation regarding the fall in the G.P. except for his contention that the debit note amount (discount) of Rs. 4,19,175/- was received as trade discount from th....

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....appeal, the assessee has raised the following grievances: "2. That the learned CIT (Appeals) has confirmed addition of Rs. 43640/- on account of personal use of electricity by partner of firm assuming that partner has carried on his business from the premises of firm. However, the Ld CIT (Appeals) has not brought on records that partner is actually carrying business from the firm premises. The ld. CIT(A) has while confirming disallowance fails to segregate the expenses of Three Phase Electricity Consumption of Rs. 197618 and Single Phase Electricity Consumption of Rs. 20592 and disallowed 20% of gross amount (Rs.218200) of electricity which is baseless, illegal and bad in law. 3. That the learned CIT (Appeals) has confirmed disallowance ....