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2015 (8) TMI 424 - PUNJAB AND HARYANA HIGH COURTNon production of books of accounts - gross profit rate on estimate basis of information available on record and while making best judgement - AO only on the ground that the books had not been produced adopted a rate of 20% - Held that:- The CIT (Appeals) and the Tribunal rightly observed that there was no incriminating evidence against the respondent and no comparable cases had been cited for arriving at the GP rate of 20% to 22%. A judgement of the Privy Council in CIT Vs Laxmi Narain Badridas, [1937 (2) TMI 1 - PRIVY COUNCIL] was relied upon by the Tribunal, where it was held that the Asssessing Officer cannot act capriciously and on the basis of his personal knowledge of previous returns and local knowledge. In the present case, in any case, the same was not even put to the assessee. The orders of the CIT (Appeals) and the Tribunal cannot be said to be perverse holding that gross profit rate declared by the assessee should be accepted - Decided against revenue.
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