Pr. Commissioner Of Income Tax-Ii Kanpur v. M/S Ekta Dairy Pvt. Ltd
[Citation -2015-LL-1028]

Citation 2015-LL-1028
Appellant Name Pr. Commissioner Of Income Tax-Ii Kanpur
Respondent Name M/S Ekta Dairy Pvt. Ltd.
Court HIGH COURT OF ALLAHABAD
Relevant Act Income-tax
Date of Order 28/10/2015
Assessment Year 2009-10
Judgment View Judgment
Keyword Tags substantial question of law • rejection of books of accoounts • closing stock • gross profit
Bot Summary: The books of accounts was rejected by the Assessing Officer under Section 145 of the Income Tax Act, namely, on the ground that the closing stock shown by the assessee in the balance sheet and the closing stock figures submitted by the assessee to the bank were different, namely, that the closing stock shown to the bank was much higher than the closing stock shown to the department. The Assessing Officer also found other discrepancies and, accordingly, the books of accounts were rejected and estimated the turnover and applied gross profit at the rate of 8.5 and, accordingly, made additions on gross profit in the assessment order. The appellate authority partly allowed the appeal and reduced the gross profit rate from 8.5 to 8 as compared to the gross profit shown by the assessee in the preceding year at 6.12. The first appellate authority found that there was no justification to apply a higher gross profit rate on the basis of discrepancy shown in the stock statement supplied by the assessee to the bank vis- a-vis to the department. The first appellate authority found that this factor alone could not be made the basis for applying a higher gross profit. The first appellate authority by giving reasons reworked the gross profit at 8, which was affirmed by the second appellate authority, namely, the Tribunal. We are of the opinion that the finding given by two authorities on gross profit is based on findings of facts, which cannot be re-appreciated in the present appeal.


Court No. - 37 Case :- INCOME TAX APPEAL No. - 266 of 2015 Appellant :- Pr. Commissioner Of Income Tax-Ii Kanpur Respondent :- M/S Ekta Dairy Pvt. Ltd. Counsel for Appellant :- Ashok Kumar Hon'ble Tarun Agarwala,J. Hon'ble Vinod Kumar Misra,J. We have heard Sri Ashok Kumar, learned counsel for appellant. present appeal relates to assessment year 2009-10. books of accounts was rejected by Assessing Officer under Section 145 of Income Tax Act, namely, on ground that closing stock shown by assessee in balance sheet and closing stock figures submitted by assessee to bank were different, namely, that closing stock shown to bank was much higher than closing stock shown to department. Assessing Officer also found other discrepancies and, accordingly, books of accounts were rejected and estimated turnover and applied gross profit at rate of 8.5% and, accordingly, made additions on gross profit in assessment order. appellate authority partly allowed appeal and reduced gross profit rate from 8.5% to 8% as compared to gross profit shown by assessee in preceding year at 6.12%. first appellate authority found that there was no justification to apply higher gross profit rate on basis of discrepancy shown in stock statement supplied by assessee to bank vis- (2) a-vis to department. first appellate authority found that this factor alone could not be made basis for applying higher gross profit. first appellate authority by giving reasons reworked gross profit at 8%, which was affirmed by second appellate authority, namely, Tribunal. We are of opinion that finding given by two authorities on gross profit is based on findings of facts, which cannot be re-appreciated in present appeal. No substantial question of law arises for consideration. appeal fails and is dismissed. Order Date :- 28.10.2015 Bhaskar (Vinod Kumar Misra, J.) (Tarun Agarwala, J.) Pr. Commissioner Of Income Tax-Ii Kanpur v. M/S Ekta Dairy Pvt. Ltd
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