Forgot password
New User/ Regiser
⇒ Register to get Live Demo
2014 (11) TMI 812 - HC - Income Tax
Estimation of GP @ 12.5% or 1.03% - Whether the Tribunal was right in estimating the gross profit of 12.5% against the gross profit of 1.03% shown by the assessee without recording any cogent and convincing reasons in support – Held that:- The average profit which has been considered for this industry is around 3 to 7% - The Tribunal has directed addition at the rate of 12.5% which is on the higher side – assessee has fairly conceded that excess 7% is on higher side and that at the most 3% may be applied - maximum and minimum of the profit rate to be 5% - the AO is directed to apply 5% G.P rate as the rate of 12.5 % is drastically higher and 1.03% is drastically lower - Gross profit rate of 5% is the average rate of the industry - Gross profit rate of 5% be applied and income of the assessee be estimated - decided partly in favour of assessee.