2022 (8) TMI 965

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ome Tax Appellate Tribunal, Surat Bench, Surat, in ITA No. 2539 of 2014. 2.1 The following substantial questions of law are proposed by the appellant department contending that they arise as substantial questions of law in relation to the impugned judgment. (i) Whether in the facts and circumstances of the case and in law, the Hon'ble ITAT is justified in deleting the addition of Rs. 4,87,61,536/- made on account of low GP in manufacturing activity as well as trading activity as compared to previous years, without appreciating that the books of accounts alongwith the supporting evidences of bills/vouchers including day to day stock register was not produced and evidenced before the A.O. during the assessment proceedings as evide....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....Assessment Year 2008-2009 from 19.34% to 5.20% in the Assessment Year 2009-2010 and 0.79% in the Assessment Year 2010-2011. The overall decline was 8.93 % and 8.44% in the manufacturing activity and trading activity respectively. 3.2 The Assessing Officer upon forming such opinion adopted gross profit rate by taking average gross profit of preceding three years including current year in respect of manufacturing and trading activity and by adopting the gross profit rate, estimated gross profit for manufacturing activity to be of Rs. 57,89,194/- and in the trading activity, estimated gross profit at Rs. 4,29,72,342/-. Thus, total amount of Rs. 4,87,61,537/- was added to the total income on account of low gross profit. 3.3 In the appeal ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....rnished the purchase book, sales book, sales bills and such other evidences with quantitative details. The appellant in his letter also mentioned the details of expenses supported by bills, vouchers and challans. It was accordingly observed that the Assessing Officer was not justified in coming to the conclusion that the details were not available and supporting documents were not produced as subsequently they were produced in the appellate proceedings. 3.6 The Appellate Authority recorded further, "...The appellant has reconciled the difference in transactions with the parties to whom notices u/w. 133(6) were issued by AO and also justified the allowance of expenses u/s. 40(a)(ia) of the Act. From the above, it is evident that ....