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2015 (11) TMI 405 - PUNJAB AND HARYANA HIGH COURTDetermination of net profit rate - Held that:- A perusal of the order passed by the Income-tax Appellate Tribunal reveals that though a reference is made to these principles but while recording its opinion that a net profit rate of 5 per cent. should be applied, the Tribunal has not referred to the relevant factors that formed the foundation of its opinion, applying a net profit rate of 5 per cent. It would be appropriate to point out that on the basis of the same material, the Assessing Officer determined a net profit rate of 10 per cent. the Commissioner of Income-tax (Appeals) at 8 per cent. and the learned Tribunal at 5 per cent. The learned Tribunal was, therefore, required to record reasons by reference to relevant facts before determining the net profit rate of 5 per cent. Consequently, without expressing any opinion on the merits of the controversy and while affirming the rejection of account books, the matter is restored to the Income-tax Appellate Tribunal, Amritsar Bench. Amritsar, for determining net profit rate in terms of the ratio in Telelinks v. CIT (2014 (12) TMI 570 - PUNJAB & HARYANA HIGH COURT ). - Decided in favour of revenue for statistical purposes.
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