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This appeal by Assessee pertaining to A.Y. 2011-12 is directed against the order of Ld. Commissioner of Income Tax(Appeals)-II Indore, (in short 'CIT(A)'), dated 27.02.2017 which is arising out of the order u/s 143(3) of the Income Tax Act 1961(hereinafter called as the 'Act') framed on Girishkumar Tayal 18.03.2014 by DCIT, 5(1) Indore. The assessee has raised following grounds of appeal:

A.That the addition of Rs. 2,43,63,545/- made by the AO by adopting profit@5% on sales and sustained by the CIT(A) is arbitrary and without justification on account of the following legal and factual errors :
3. Briefly stated facts as culled out from the records are that the assessee is an individual running sole proprietorship concern in the name of M/s Pradeep Cotex Industries which is engaged in the business of Ginning & pressing. Income of Rs. 50,45,440/- was declared in the e-

return filed on 26.09.2011. Case was selected for scrutiny followed by serving of notices u/s 143(2) & 142(1) of the Act. Ld. AO examined the books of account and other details on various aspects. However we are confined to the Girishkumar Tayal issue of rejection of book results and estimation of net profit. In this regard Ld. AO called for the details of purchases with supporting documents and observed that at various places that the cash has been claimed to have been paid for purchases to the farmers but in the cash book the transactions of paying cash is not appearing. Riding on this observation Ld. AO concluded that books of accounts maintained by the assessee are not reliable and are thus liable to be rejected. He further placing reliance on the decision of Coordinate Bench Indore in the case of Shri Amar Agrawal in ITA No. 611/Ind/2012 dated 20.08.2013, computed the net profit @ 5% of the gross sales which worked out to Rs. 2,43,63,545/- and computed the income accordingly after making other addition as mentioned in the impugned assessment order.

(iv) Ld. AO erred in applying the decision of Coordinate Bench, Indore in the case of Shri Amar Agrawal (supra) even when the assessee's facts were not same.

6. Per contra Ld. DR vehemently argued supporting the order of both the lower authorities.

7. We have heard the rival contentions and perused the record placed before us. The assessee is aggrieved with the finding of the Ld. CIT(A) confirming the action of the assessing officer for rejecting book results and estimating income by applying 5% net profit rate on the gross sales.

13. In the result, appeal of the assessee is allowed for statistical purposes.

Order was pronounced in the open court on 29 .04.2019. 

           Sd/-                               Sd/-
     (KUL BHARAT)                     (MANISH BORAD)
   JUDICIAL MEMBER                 ACCOUNTANT MEMBER
Indore;  दनांक Dated : 29/04/2019
ctàxÄ? P.S/. न.स.

Copy to: Assessee/AO/Pr. CIT/ CIT (A)/ITAT (DR)/Guard file.

By order Assistant Registrar