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2021 (7) TMI 584 - ITAT JAIPURRejection of books of accounts u/s 145(3) - GP estimation - HELD THAT:- As per CIT while examining gross margins, the AO should not only compare the past margins of the assessee but also the current year margins of other assessee engaged in similar business. This would give an insight into the actual profit margins during the year under reference and would be a correct guide for estimation of profits. He held that no business can have a minimum threshold G.P every year just to satisfy the whims of the Assessing Officer and the working of the A.O. is more theoretical and mathematical than cogent or real. He accordingly didn’t agree with the estimated increase in G.P. rate to 3.03% done by the AO as against 2.57% shown by the assessee. We see no justifiable reasons in interfering with the said findings of the ld CIT(A). We upheld the order of the ld CIT(A) and ground of appeal so taken by the Revenue is dismissed.
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