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2012 (10) TMI 331 - HC - Income TaxIncrease in profit rate - 4.72% v/s 8% - Held that:- The Tribunal has not found any good reason to increase the profit rate on the grounds that the assessee had disclosed a net profit rate of 4.72% for the immediately preceding year. The nature, and the customer profile of its business were essentially the same. The comparable profit rates disclosed by the other operators and adopted by the revenue in such cases was 4% to 8% and thus the disclosed profit rate of 4.72% was found to be a reasonable estimate of the assessee's profit for the year in question, subject to deductions on account of depreciation allowance as well as interest and salary to partners.On the question of deductions of material and interest the matter has been remanded and therefore, there is no final opinion of ITAT. As AO did not give any reasons, which have been given by the ITAT in restoring the profit rate of 4.72%. The absence of signatures on some of the vouchers and non-maintenance of stock - register by itself could not be a ground to increase the profit rate - no substantial questions of law arise for consideration in this appeal.
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