MARUTI MILLS PRIVATE LIMITED,BALOTRA vs. ITO, BALOTRA

ITA 91/JODH/2020Status: DisposedITAT Jodhpur23 March 2023AY 2000-0114 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal found that the GP rate of 25% confirmed by the CIT(A) was not entirely justified, considering a previous order for AY 1999-2000 which upheld a GP rate of 18.93%. Therefore, a GP rate of 17.5% was deemed reasonable. The Tribunal confirmed the CIT(A)'s order regarding peak credit addition.

What were the facts?

During a survey, the assessee was found to have a duplicate set of books of accounts and gate passes indicating unrecorded transactions. The Assessing Officer (AO) made additions based on unrecorded processing receipts and a lower Gross Profit (GP) rate than comparable entities.

What were the issues?

Whether the addition made on account of unrecorded processing receipts and the GP rate adopted by the AO are justified. Whether the addition on account of peak credit is sustainable.

Which sections of the Income-tax Act were involved?

Section 133A,Section 131(3)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, JODHPUR BENCH, JODHPUR

Before: SHRI KUL BHARAT & SHRI MANISH BORAD

For Appellant: Shri Rajindra Jain, CA
For Respondent: Shri S.M. Joshi, JCIT-
Hearing: 20/03/2023

PER: SHRI MANISH BORAD, AM

This is an appeal filed by the assessee against the order of the ld. CIT(A)-2, Jodhpur dated 26-02-2020 for the assessment year 2000- 01 raising therein following grounds of appeal.

2 ‘’1. That the appellate order dated 26-02-2020 passed by the ld. CIT(A) confirming the addition/disallowances made by the AO is bad in law and on facts.

2.

That in the facts and circumstances of the case, the ld. CIT(A) erred in confirming the trading addition of Rs.30,91,677/- made by the AO for the relevant assessment year which otherwise is fully liable to be deleted.

3.

That in the facts and circumstances of the case, the ld. CIT(A) erred in confirming the addition of Rs.2,16

The order continues below.

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