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10. Based on the arguments advanced by the assessee and considering the past results, the ld. CIT(A) restricted such GP rate to 1.5% of the gross receipts by invoking the provisions of section 145(3) of the I.T. Act.

11. Aggrieved with such part relief granted by the ld. CIT(A), the Revenue filed an appeal against which the assessee has filed the Cross Objection.

12. We have considered the rival arguments made by both the sides and perused the orders of the authorities below. It is an admitted fact that before the Assessing Officer the assessee could not explain the difference the turnover reflected in the Profit & Loss Account and the amount in Form 26AS for which the Assessing Officer resorted rejection of book results and estimation of the profit by adopting GP rate of 2% of the gross turnover. We find the assessee before the ld. CIT(A) reconciled such difference to some extent but at the same time an amount of Rs.1,78,92,755/- could not be reconciled for which the ld. CIT(A) while upholding the rejection of book results restricted such GP rate to 1.5% as against 2% adopted by the Assessing Officer on the basis of past results. It is the submission of the ld. counsel for the assessee that such GP rate was accepted at 1.23% for assessment years 2008-09 and 2009-10 and 0.96% for assessment year 2010-11. Therefore, as against 0.70% declared by the assessee during the impugned assessment year the adoption of GP ratio at 1.5% by the ld. CIT(A) is on the higher side. We have gone through the past results and find that the turnover of the assessee in assessment year 2008-09 was at Rs.24,59,78,295.53, Rs.29,69,73,739.26 for assessment year 2009-10, Rs.42,07,31,520.56 for assessment year 2010-11 and Rs.62,66,07,387.68 for assessment year 2011-12. We find while turnover of the assessee is increasing from year to year the GP rate is decreasing. It is also not understood as to how the income as per return of income for assessment years 2008-09 and 2009-10 are same at Rs.36,48,898.75 whereas the turnover for assessment year 2008-09 is Rs.24.60 crores and for assessment year 2009-10 is Rs.29.70 crores. However, it is also an admitted fact that the case of the assessee was under