TaxTMI 
TaxTMI 
2017 (9) TMI 1464
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.... law the CIT(A) has grossly erred in not accepting the past history of GP rate in assessee's own case as required, interalia, in the decisions of Jurisdictional High Court in various cases. 3. That on the facts and circumstances of the case and in the law the CIT(A) has grossly erred in enhancing the G.P. rate to 10.58% as against the G.P. rate of 9% accepted by the AO itself in gross violation to the provisions of section 251 of the Act. That the above grounds are independent and without prejudice to one another. That the appellant craves leave to Add to and / or amend, modify or withdraw the grounds outlined above before or at the time of hearing of the appeal." 3. From the above grounds, it is gathered that only grievance....
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....rejection of books of accounts now the question before me is to estimate the profit. It is well settled law when the assessee has not proved the correctness of the books of account and has not produced any record to support his claim as to the taxable income; it is always open to the AO to estimate the income and profit therein as per similar business data. Now I have only option to compare the GP rate shown by the similar other units. The gross profit rate shown by M/s Khalsa Cane Crusher, Village Khandsal, M/s Rana Khandsari Udhyog, Village Makhdumpur, M/s Paigamberpur Khandsari Udhyog, Village Paigamberpur and M/s Uppal Cane Crusher, Peepli Katan are 12.59%, 7.85%, 11.44% and 10.45% respectively. Thus, the gross profit is hovering from 7....
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....xpenses such as bardana, Jhonk, Mandi Fees and Purchase tax. Therefore, the comparison of GP rate with those would have to be done after excluding those expenses from the assessee's trading account. The assessee also furnished the past history, the details of the GP rate and net profit rate as per following details: Particulars A.Y. 2009-10 A.Y-2010-11 A.Y. 2011-12 A.Y. 2012-13 A.Y. 2013-14 Sales Amount 22428332.00 24983800.00 26894546.00 37916915.00 40956553.00 Gross profit Amount 729789.00 993635.00 1083850.00 1175079.00 1452048.00 Gross Profit (%) 3.25% 3.98% 4.03% 3.10% 3.55% Net profit Amount (Capital Intt. & Remu) 303100.00 993635.00 526830.00 43642....
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....s. To this extant the AO's order needs to be corrected. But at the sometime I also do not agree with the AO's decision to apply only 9% as G.P. rate instead of 10.58% (which is the average rate of G.P. of the other 4 units for the same year). Thus I direct the AO to calculate the G.P. 10.58% instead of 9% after taking into account the additional expenses that others units have not shown in their trading account. The G.P. of the appellant comparable with their units would come to Rs. 34,33,187/- i.e. 8.38% thus the addition will be of (10.58% - 8.38%) 2.20% and at this rate the extra profit would work out to be Rs. 9,01,043/- instead; of Rs. 22,32,133/-. The appellant gets relief to the extent of the balance amount." 7. Now the....