TaxTMI 
TaxTMI 
2017 (11) TMI 1470
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.... register and on that basis the Assessing Officer rejected the books of account and made a lump sum addition of Rs. 2.00 lacs. The Assessing Officer also did not accept the declaration of agricultural income of Rs. 22,900/- and also made the addition. The ld. CIT(A) reduced the trading addition to Rs. 1.00 lac and also sustained the addition on account of agricultural income of Rs. 22,900/-. 3. Now the assessee is in appeal before the ITAT by taking following grounds of appeal: "1. On the facts and in the circumstances of the case Ld. CIT(A) erred in upholding the rejection of books of accounts by Ld. AO by invoking provisions of section 145(3) of the income Tax Act,1961 solely for non maintenance of day to day Stock Register. A....
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....sale or purchase was found unverifiable by A.O.. Considering all these facts, I find it reasonable to sustain trading addition to extent of Rs. 1,00,000/-." 5. While pleading on behalf of the assessee, the ld AR has submitted as under: That the appellant is a wholesaler of sugar and books of the accounts were duly audited and the auditors had not made any adverse remark in particular, nor have they questioned the reliability of the books of the appellant. Further in the tax audit report the auditor has duly verified the tally of goods traded. During the course of assessment proceedings, the assessee submitted final quantitative tally in respect of the items, dealt with by him, giving complete quantitative details of the goods in....
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....usal of the aforesaid chart it is evident that, the marginal fall in GP rate is attributable to the substantial increase in turnover, (about 30% as compared to the previous year). Such sharp increase in turnover in the competitive market could be achieved only by incurring extra cost or by lowering the profit margin which is fundamental principal of marketing. Also that, the commodity in which the appellant deals, is a semiperishable commodity, which does not have a static demand, and thus due to its nature, has to be sold off with lesser margins, in order to abstain from being obsolete and unfit for consumption. This results in variation in the overall GP rates. Further, the Ld. AO has made adhoc addition without appreciating the quantum o....
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....was .64% in comparison to .71% of preceding year. Therefore, the addition sustained by the ld. CIT(A) is higher side. In view of this fact, I sustain the addition only of Rs. 50,000/-. Accordingly, ground No. 1 of the appeal is dismissed and the ground No. 1.1 of the appeal is partly allowed. 8. In the ground No. 2 and 2.1 of the appeal, the issue involved is against sustaining the addition of Rs. 22,900/- under the head business income while the assessee has declared the income as agricultural income in the return of income. 9. The ld. CIT(A) has sustained the addition by holding as under: "In respect of addition of Rs. 22,900/- by A.O. by treating agricultural income as business income, it is seen that the assessee has not ....