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2014 (1) TMI 1692 - AT - Income TaxTrading addition - CIT(A) applying G.P. Rate of 9% as against G.P. Rate of 7.18% declared by the assessee - Held that:- Since the facts of the present case are similar to the facts involved in the earlier years, the only difference is that the turnover for the year under consideration is lower at ₹ 7,27,78,920/- in comparison to ₹ 8,99,95,783/- in the preceding year. It is also noticed that the G.P. rate declared by the assessee is also declining year after year and the reason for the same as given by the assessee is that there is a tough competition and to maintain the sales, the assessee reduced the price. We, therefore, considering that fact, are of the view that it would be fair and reasonable if the G.P. rate of 8% is applied for the year under consideration as against 8.11% directed to be applied by the ITAT for the earlier A.Ys. 2006-07 & 2007-08. Accordingly, we modify the order of the Ld. CIT(A) and direct the AO to work out the income of the assessee by applying the G.P. rate of 8% instead of 9% directed to be applied by the Ld. CIT(A). - Decided partly in favour of assessee.
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