TMI Blog2012 (11) TMI 662X X X X Extracts X X X X X X X X Extracts X X X X ..... O on account of low gross profit from 15% to 7.43%. - held that:- The assessee has not challenged the rejection of the book results u/s 145(3) of the IT Act. - considering the history of the assessee we are of the view the learned CIT(A) rightly and reasonably applied the gross profit rate of 7.43% for computing business income of the assessee. - ITA No.261, 262 and 298/Ahd/2009 - - - Dated:- 13-1-2012 - SHRI BHAVNESH SAINI AND SHRI A. K. GARODIA, JJ. Assessee by Shri Mehul K. Patel, AR Department by Shri S. K. Gupta, CIT DR ORDER PER BHAVNESH SAINI: This order shall dispose of all the above appeals in which same issue is involved. 2. We have heard the learned representatives of both the parties and perused the find ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al of the assessee on both these grounds. 5. The learned Counsel for the assessee at the outset submitted that since the matter was restored to the file of the learned CIT(A) in assessment year 2003-04 and the matter is still pending before the learned CIT(A), therefore, the matter may be restored to the learned CIT(A) as is directed by the Tribunal vide order dated 19-07-2007. Copy of the order is placed on record. The learned DR has no objection for restoring the matter to the file of the learned CIT(A). 6. On consideration of the above facts, we are of the view the matter requires reconsideration at the level of the learned CIT(A). The AO made protective assessment by following the order for assessment year 2003-04 in which the Tri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the preceding assessment year 2003-04 the matter is restored to the file of the learned CIT(A), therefore, protective assessment was made u/s 41(1) of the IT Act. The issue is similar as is considered in ITA No.261/Ahd/2009. By following the order in ITA No.261/Ahd/2009, we set aside the order of the learned CIT(A) and restore this issue on grounds No.1 and 2 of the appeal to the file of the learned CIT(A) with direction to re-decide these grounds in accordance with law by giving reasonable sufficient opportunity of being heard to the assessee. In the result, grounds No.1 and 2 of the appeal of the assessee are allowed for statistical purposes. 11. On ground No.3 in the appeal of the assessee, the assessee challenged confirming of add ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... also. The learned Counsel for the assessee also did not argue on rejection of the book results. Therefore, rejection of the book results by the authorities below is not in challenge before us. The learned Counsel for the assessee however, submitted that the addition is still on excessive side. The learned DR relied upon the order of the AO for applying 15% gross profit rate. Considering the history of the assessee, we find that the learned CIT(A) was justified in applying gross profit rate of 7.43% as was adopted in the preceding assessment year. In the assessment year under appeal, the assessee has shown more turnover as well as declared the loss at Rs.87,43,828/- in the return of income. Therefore, considering the history of the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X
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