Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2012 (3) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2012 (3) TMI 404 - HC - Income TaxGross profit rate determination - Held that:- Consideration the various factors, on which the gross profit rate is dependent, i.e. on the cost of purchases and sales. The assessee had filed a chart showing purchases and sales of 35 items. In these items, the rate of profit has varied from 6.32% to 26.45%. The gross profit on sales to the extent of ₹ 59,40,181/- is around 13%. The total turnover during the year under reference is ₹ 8.86 crores. ITAT has held that gross profit rate does not depend on the basis of specification of item, but it depends upon the quality, shine etc. The assessee has earned gross profit varied from 6.32% to 26.45%, but from the chart filed by the assessee, it cannot be concluded that gross profit rate declared by the assessee was correct. AO has found that purchases were not fully verifiable. The books of accounts were rejected for various reasons. Previous year also gross profit rate was 18.87% and this year, it has been accepted at 17% by the CIT(A) and the order passed by the CIT(A) has been affirmed by the ITAT. No substantial question of law arises
|