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2013 (11) TMI 133 - AT - Income TaxAddition on account of low Net profit ratio – Held that:- It is well-settled law that merely on the ground of low gross profit ratio, the addition to the assessee's returned income cannot be made - the Assessing Officer merely referred to the discount of 10 percent offered by retailers on the printed price but did not demonstrate as to how that affected the gross profit declared by the assessee. He had not brought on record any comparable case, wherein, the net profit declared by a tax payer in the similar business, was higher, than the one declared by the assesse – Following S. N. Namasivayam Chettiar v. CIT [1960 (2) TMI 9 - SUPREME Court] - The accounts which are regularly maintained in the course of business should normally be taken as correct - The onus is upon the Revenue to show that either the books of account maintained by the assessee were incorrect or incomplete or that the method of accounting adopted by him was such that true profits of the assessee cannot be deduced therefrom – Decided against Revenue.
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