Case Law Details
Punjab & Haryana High Court held In the case of Harish Ahuja vs. CIT that in this case AO was not in position to verify the proper Gross profit rate because the assessee has not maintained the stock register. No satisfactory explanation had been furnished by the assessee for not maintaining the stock register. Considering that assessee is trading in the items of well established companies and is a wholesaler/ C&F agent, maintainability of stock register is compulsory for the assessee and in absence of the same, rejection of books of account is valid.
Facts of the Case
The assessee filed his return of income 30.9.2009 for the assessment year 2009-10 declaring the income at Rs. 14,04,784/-. The Assessing Officer passed order under Section 145(3) framed the assessment at Rs. 55,14,510/- by making an addition of Rs. 41,09,728/-. Feeling aggrieved, the assessee filed an appeal before the CIT (A). The CIT (A) while partly allowing the appeal of the assessee restricted the GP rate to 9% and upheld the rejection of books of account. Still dissatisfied, the assessee filed an appeal before the Tribunal who upheld the ground of rejection of books of account and directing the Assessing Officer to apply GP rate of 8% instead of 9% as ordered by the CIT (A).
Daily Stock Register Format
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