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2015 (4) TMI 104 - HC - Income TaxG.P. Rate addition - Tribunal agree with the submission of assessee that assessee’s taxable income from business should be computed on the basis of comparison of net profit rate shown by the assessee in the immediate previous year and shown in the current year, taxable income from business for this year by applying the net profit rate as accepted in the immediate previous year. - Held that:- The findings of facts in the peculiar facts and circumstance of the case, go to show that there was fall in gross Profit rate and the justification of profit ought to have been seen from the angle and not net profit rate. Thus, we are in complete agreement with the findings of facts by the Tribunal and the decision of the CIT(Appeals) which is placed reliance on certain authoritative decisions of the Tribunals were misplaced and were misreading of the provisions of law as they were not applicable in the present case. In the facts and circumstances of this case, we hold that the Tribunal was right in coming to the conclusion that addition made by the Assessing Officer and confirmed by the Commissioner of Income-tax (Appeals)-II, Surat, on G.P. rate is not correct. - Decided in favour of the assessee
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