2022 (6) TMI 448

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....in-after referred to as "the Act") relevant to the Assessment Year 2011-12. 2. The assessee has raised the following grounds of appeal: "1. The Ld. CIT(A) has erred on facts as well as in law in confirming estimation of GP as much high at 38% and making additions amounting to Rs.16,61,725/-. Th same needs deletion. 2. Without prejudice, the Ld. CIT(A) has erred on facts as well as in law in confirming estimation of GP as much high at 38% and making additions amounting to Rs.16,61,725/-. The same needs substantial reduction. 3. Taking into consideration legal, statutory, factual and administrative aspects addition/disallowance of Rs.16,61,725/- ought to have been confirmed. The same needs cancellation. ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... the immediate preceding year. The gross profit ratio for the current year is 17.05% whereas the GP ratio of the immediate preceding year stands at 54.78%. It was explained by the assessee that there was high wastage of material which has reduced the gross profit ratio but the same was not substantiated based on the documentary evidence. ii. The assessee was not claiming the reimbursement of airfare charges from its customers. The reasons for the same were not explained satisfactorily by the assessee. iii. There was no satisfactory explanation furnished by the assessee with respect to the prior period expenses debited in the year under consideration. iv. There were certain defects and infirmities in the salary reg....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....Profit Ratio. The only issue in contention is whether the underlying turnover of appellant should be reduced by the item of "Sales Return" of Rs.29,59,826/-. The AO has objected to this submission which was raised for the 1st time before CIT(A) and was never raised before the AO. Thus the AO is not disputing the veracity of Debit note, he is only objecting to its admissibility of this new claim of altering the figure of Gross Turnover by adding back the figure of "Sales Return". I d o not agree with the AO that this issue cannot be raised now. I allow this issue to be raised and to be considered. 7.4 What was agreed between the appellant and the AO was to substitute declared Gross Profit @ 17.05%to @ 38%. The declared Gross Profit ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....round is dismissed." 7. Being aggrieved by the order of the learned CIT-A, the assessee is in appeal before us. 8. The learned AR before us has filed the written submissions which are reproduced as under: "The only issue involve after the decisions of Ld. A.O. regarding withdrawal of exemption granted by himself u/s.10A is discussed at para 9 page 4 of the Assessment order and also confirmed by the Ld. CIT Appeal. This issue had already been considered by the Hon. ITAT Rajkot Bench in the case of assessee for A.Y. 2009-10 in ITA No.64/RJT/2014 (Copy Enclosed). Considering this it is humbly prayed that the appeal may kindly be allowed granting deduction u/s.10A by the Ld. A.O. and then withdrawn by himself the same amounting t....