2019 (1) TMI 461

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....ppellant has challenged correctness of the order dated 08.12.2016, passed by the learned CIT(A), in the matter of assessment under section 143(3) of the Income Tax Act, 1961, for the assessment year 2012-13. 2. The grievances raised in the appeal are as follows :- (1) Learned A.O. erred in making addition of Rs. 3,61,005/- on the basis of lower gross profit margin. (2) Learned....

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....s reason the book results were rejected by invoking provisions of section 145 of the Act and Gross Profit margin of the assessee was estimated at 4.22% as against the Gross Profit margin of 3.9% disclosed by the assessee. Aggrieved, assessee carried the matter in appeal before the ld. CIT(A). It was submitted by the assessee that the fall in Gross Profit margin is only marginal. In any case, the G....

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....t the assessee accepted the offer in good faith. This conduct cannot be, according to the ld. Counsel, before the CIT(A) reasons enough for impugned addition. Ld. CIT(A) did not yield these submissions and in a very scholarly analysis observed that when the assessee voluntarily accepted the addition, it cannot give rise to further appeal. The impugned addition was thus confirmed by the ld. CIT(A).....

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....is. The business has been never so static so as to ensure same G.P. rate from year to year particularly when the assessee is dealing in such products as electric goods where Gross Profit margin not only varies from item to item but from season to season. I am, therefore, of the considered view that the impugned addition thus not deserves to be sustained on merits. 6. As regards the stand of the....