2019 (9) TMI 546

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.... the course of assessment proceedings the Assessing Officer observed from the audit report that assessee is not maintaining any stock record and the auditors have pointed out that physical stock was verified and certified by the partner. He, therefore, held that all sales/ purchases are not properly entered in the books of account. He, therefore, rejected the book results by invoking the provisions of section 145 of the IT Act. He analyzed the past results of the assessee vis-à-vis the current year results which are as under :- Asstt. Year Turn over G. P. GP% 2009-10 Rs. 2,50,17,229/- Rs. 19,01,928/- 7.60% 2010-11 Rs. 76,45,540/- Rs. 5,63,794/- 7.37% 2011-12 Rs. 2,09,13,300/- Rs. 11,98,677....

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....06-07 the trading addition made by the Assessing Officer was deleted by the CIT(A) and on further appeal by revenue, the Tribunal has dismissed the appeal filed by the revenue. 7. So far as the decision relied by the CIT(A) in the case of Kachwala Gems Vs. CIT [2007] 288 ITR 10 (SC) is concerned he submitted that there were so many defects pointed out by the lower authorities and there was no quantitative tally for which the basis of valuation of closing stock by the assessee was rejected and best judgment assessment was adopted. However, in the instant case there is no such defect except non maintenance of the stock record. However, the books maintained by the assessee gives the full quantitative details and, therefore, the decision rel....

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....ents made by both the sides, perused the orders of the Assessing Officer and the CIT(A) and the paper book filed on behalf of the assessee. I have also considered the various decisions cited before me. I find the Assessing Officer estimated the GP rate at 10% as against 5.73% shown by the assessee on the ground that assessee has not maintained any stock register and the closing stock was certified by the partners on the basis of verification of physical stock. I find the Ld. CIT(A) relying on various decisions upheld the action of the Assessing officer. It is the submission of the Ld. Counsel for the assessee that although assessee has not maintained any stock register, however, the accounts are maintained in such a way that quantitative de....