2019 (2) TMI 1400

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.... 28.02.2018 are bad in law and on facts of the case, for want of jurisdiction and various other reasons and hence the same kindly be deleted. 2. Rs. 1,20,270/-: The ld. CIT(A) erred in law as well as on the facts of the case in confirming addition of Rs. 1,20,270/- as a trading additions towards disallowances of expenses without knowing the substantiation of transactions, is contrary to the provisions of law and facts of the case. Hence, the same kindly be deleted in full. 3. Rs. 4,87,881/- The ld. CIT(A) erred in law as well as the facts of the case in confirming addition of Rs. 4,87,881/- for Travelling Expenses without knowing the substantiation of transactions and ignoring evidences, is contrary to the provisions of law and facts ....

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....les by 19.21%. It is normal phenomenon of any business industry, higher the sale lower the margin and vice versa. I found that comparisons of Gross profit (GP): The Comparison of G.P. and N.P for the last three Assessment years are as under: (Rs. In lacs)   2012-13 2013-14 2014-15 Gross Turn-over 467.48 434.19 517.63 Gross Profit 47.76 86.38 96.37 Gross profit(%) 10.21% 19.89%  18.62% Net Profit 9.90 9.34 10.30 It is clear that N.P ratio is higher in the A.Y. 2014-15 in comparison to A.Y. 2012-13 & 2013-14. 6. I also found that the Assessing Officer has not found that purchase and sales recorded in the books are inflated or bogus. Further the Books of accounts are audi ted u/s 44AB of the income tax act. W....

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....nder these facts and circumstances of the case, I do not find any merit for disallowance foreign travelling expenditure, having been incurred by the assessee for the purpose of this business. Assessing Officer is directed to delete the same. 8. The last grievance of the assessee relates to confirmation of addition of Rs. 75,000/- on account of deemed rental income. 9. Rival contentions have been heard and record perused. During the assessment proceedings, i t was noticed by the Assessing Officer that the assessee has purchased a house at Kamla Enclase, Bhilwara on 29.01.2014 but no rental income from the said house property was declared. Since the assessee was already having another house property at 6-a-42, Chandrashekhar Azad Nagar, Bhi....