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2013 (12) TMI 1163 - HC - Income TaxEnhancement of GP rate - Held that:- Following Commissioner of Income Tax (Central) Kanpur vs. M/s Carpet Palace, Rajpura, Bhadohi [2013 (9) TMI 447 - ALLAHABAD HIGH COURT] - The questions framed on the basis of rejection of books for low GP rate are not substantial questions of law - The material found during the search and seizure relating to AYs 2007-08, 2008-09 and 2009-10, (included in the block assessment period) was not considered by the AO - The AO satisfied himself in rejecting the books of account and thereafter raising the G.P. rate arbitrarily - The ITAT has given sufficient reasons to find that in comparable cases the G.P. rate in the relevant financial year was from 9% to 21%, whereas the assessee had disclosed a much higher gross profit rate at 28.4% - There was no justification to increase the G.P. rate beyond the highest gross profit rate in comparable cases, when the assessee had disclosed a higher rate of 22.40% for AY 2005-06 and 22.42% for AY 2006-07 - Decided against Revenue.
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