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2014 (1) TMI 907 - AT - Income TaxAdmission of additional evidence – Calculation of suppressed income – AO did not get the opportunity to offer comments as per Rule 46A of the Rules - Held that:- There was no violation of the provision of Rule 46A could be shown by the Revenue – Decided against Revenue. Error in application of GP ratio - The CIT(A) has passed a well considered speaking order on the issue - the GP rate has been applied as declared by the assessee on accounted job work on the figure of suppressed job charges for all three years in appeal – The GP rate applied by the CIT(A) on the suppressed job charges amounts to applying of net profit rate as no further deduction of expenditure was allowed to the assessee - There was no justification for applying the GP rate of 38.77% on the figure of suppressed job charges, as canvassed on behalf of the Revenue - the entire job charges could not be subjected to the tax, as all the direct expenditure, which are essential part for earning gross job receipts charges have to be allowed to the assessee to arrive at a realistic and reasonable figure of profit on the suppressed job charges received by the assessee – Relying upon Commissioner of Income-tax Vs President Industries [1999 (4) TMI 8 - GUJARAT High Court] – there was no infirmity in the order of the CIT(A) in partly allowing the ground of the appeal of the assessee, and estimating the GP rate on the suppressed job charges at GP declared on accounted job work by the assessee – Decided against Revenue.
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