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2013 (7) TMI 813 - HC - Income TaxMethod of computing profit rate - A.O. used comparable method of accounting - CIT upheld the method of accounting but reduced the amount of addition - Tribunal deleted disallowance - Held that:- The CIT(A) has given cogent reason for not endorsing the approach of the AO in making assessment with reference to the case of another assessee after finding it to be not a directly comparable case and hence, not a safe guide more particularly, when assessee's past history was available and there was no material difference in the facts pertaining to the relevant assessment year and the past history year. The CIT(A), even while accepting past history as the relevant basis for assessment, proceeded to retain a part of the addition without cogent and sufficient reason therefor. The Tribunal, therefore, while endorsing the basis adopted by the CIT(A), has found no reason to sustain any addition and hence, deleted the addition altogether - Tribunal cannot be faulted in accepting the profit rate as declared by the assessee while not approving the rate as applied by the AO -Following decision of Commissioner of Income Tax Vs. Sadrudeen Hussaion [2001 (7) TMI 11 - RAJASTHAN High Court] and Ram Prakash v. CIT [1983 (9) TMI 262 - ALLAHABAD HIGH COUR] - Decided against Revenue.
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