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2012 (9) TMI 548 - ITAT, DELHIAddition made on account of higher Gross Profit rate – The G.P. rate is on higher side as compare to earlier years in the assessee’s own case - GP rate also more than the comparable case quoted by AO for the same assessment year - Held that:- In AY 2005-06, in assessee’s own case, the GP rate of 2.37% was accepted by the Revenue. AO himself considered u/s 143(3) the GP rate of 2.65% in AY 2006-07 to be reasonable. Therefore, ITAT did not find any justification for applicability of GP rate of 4.90% by AO. The gross profit rate disclosed by the assessee at 3.63% is better as compared to earlier two years of assessee’s case and also better than the comparable case of Sat Paul & Sons quoted by the Assessing Officer for AY 2007-08. Appeal allowed in favor of assessee.
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