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2015 (5) TMI 1038 - HC - Income TaxDetermination of net profitability rate - assessee declared a net profit rate of 3.5% - AO applied the rate of 12% - CIT applied the rate of 5% - ITAT @ 8% - Held that:- As held by a Division Bench of this Court in Telelinks Vs. Commissioner of Income Tax, Bathinda (2014 (12) TMI 570 - PUNJAB & HARYANA HIGH COURT) the discretion to determine an adequate net profit rate is neither unbridled nor unguided and must be guided by reason i.e. it should be preceded by a perceptible process of reasoning, based upon due consideration of all relevant facts. It was observed that the authorities under the Act appear to construe their jurisdiction as a discretion to apply a thumb rule dependent almost entirely upon the whims of a particular Officer. The Tribunal has merely applied the rate of 8%, without indicating any reason whatsoever, for having done so. The matter is, therefore, identical to the one dealt with by the Division Bench, in the above judgment.The order dated 15.07.2014 (Annexure A-9), passed by the Tribunal, is set aside and the matter is restored, to pass a fresh order, in accordance with law - Decided in favour of assessee
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