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2015 (1) TMI 618 - ITAT DELHIDetermination of G.P. rate - rejection of books of accounts - addition of ₹ 19,08,583/- G.P. rate at 4.9% as against 2.58% declared by the assessee - Held that:- Contention of the Department that in similar line of business, the G.P. rate, as accepted by the Tribunal, is in the range of 3.61% to 3.63% and, therefore, the same should be accepted is acceptable because when G.P. rate is applied for similar line of business, then for same assessment year there could not be any wide variation in the G.P. rate. Merely because assessee has shown better result for the current year cannot be the sole criteria and due regard has to be given to the G.P. rate adopted in same line of business for same assessment year. The G.P. rate in the case of Sat Paul & Sons (selected as comparable cases) has been taken at 3.53%. The AO has considered the case of Sat Paul & sons as one of the comparable cases and we find that in the similar line of business the G.P. rate accepted by the Tribunal in the case of Krishan Kumar [2012 (9) TMI 548 - ITAT, DELHI] is 3.61% and in the case of Jai Parkash 3.63%. Therefore, considering all comparable cases, we are of the opinion that it would serve the interest of justice if the G.P. rate of 3.53% is adopted in the case of the assessee as was in the case of Sat Paul & Sons. We order accordingly. - Decided partly in favour of assessee as well as the Revenue.
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