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7. We have heard both the parties and have gone through the orders of the authorities below. The assessee has not been able to point out any irregularity in the AO's order in rejecting the assessee's books of account in the light of specific defects pointed out by the AO. We therefore hold that the AO was justified in estimating the GP. However, keeping in view the fact that the assessee's turnover has been increased from `33,46,663/- and `70,88,731/- in the AY 1999- 2000 & 2000-01 respectively to `2,65,87,835/- in the current year, and in the light of the fact that the GP rate shown in AY 2000-01 was 20% only and in AY 1999-2000 GP rate was 28.21%, we hold that estimation of GP at 21% will be justified. It is well settled that when turnover increases, margin of profit decreases. The rate of GP in the immediate preceding assessment year was 20% but due to certain defects in the year under consideration, some addition is called for. We, therefore, estimate the GP at 21% which is to be applied for making addition on account of omission of profit in the year under consideration. The AO shall modify the assessment order accordingly.