The AO rejected the books of account of assessee and estimated the gross profit at 18% . On appeal the CIT ( A) reduced the GP from 18% to 16%. On appeal the Tribunal held that the assessee is dealing with large number of small items . It was not possible to for it to maintain stock register and movement of stock for each and every\u00a0 item . The assessee verifies its stock physically at the end of the year regularly and thus all wastages ,pilferages and other losses automatically get accounted for determining the true profits .\u00a0\u00a0 All purchases and sales vouchers and other records maintained by the assessee were found to be in order . Accordingly the Tribunal held that \u00a0the Tribunal held that \u00a0the \u00a0Books of account cannot be rejected merely for non -maintenance of\u00a0 stock register. \u00a0(ITA No. 1097\/Chd \/2016 dt 30 -6 -2020 ) (AY. 2013 -14)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 145 : Method of accounting \u2013 Books of account cannot be rejected merely for non -maintenance of stock register [ S.145(3)<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-14562","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-3MS","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/14562","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=14562"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/14562\/revisions"}],"predecessor-version":[{"id":14563,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/14562\/revisions\/14563"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=14562"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=14562"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=14562"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}