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2015 (2) TMI 906 - HC - Income TaxNet profit addition - AO proceeded to work out "after rejection of the assessee's books of account" the gross profit rate at 5.35% and on that basis, determined the net profit to be 1.96% - based upon the previous year's assessments - Held that:- AO did not apply his mind to the circumstances of the case, considering that the assessee had urged, during the course of the proceedings, that the cost of raw material had increased. Likewise, the rate of interest payable had increased, considering that it had borrowed amounts in the routine course of its business. That explanation, was furnished to argue that the rate of net profit was 1.04%, as opposed to the rate of the previous years i.e. 1.96%. By all accounts, the explanation of the assessee was reasonable as was held by the CIT(Appeals) and the ITAT. No reason to interfere with the concurrent findings. - Decided in favour of assessee.
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