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2019 (1) TMI 1600 - AT - Income TaxAddition on account of the excess burning loss - understated production/suppressed production - GP addition - HELD THAT:- We find that the Ld.CIT(A) in appeal though upheld the AO’s view in not considering the order passed by his predecessor in respect of A.Y. 2010-11 in appeal in deleting the addition simply on the ratio of non-applicability of principle of res-judicata as held by the Hon’ble Madras High Court we however, cannot ignore the same since the Appellate Order was confirmed by the Co-ordinate Bench on [2018 (12) TMI 1670 - ITAT AHMEDABAD] . However, we appreciate the trouble taken by the Ld.CIT(A) in the impugned judgment is adopting the rational method by taking the latest profitable Assessment Year 2014-15 as standard GP to compute GP addition As already mentioned that the GP ratio is on decline and the same has become negative in A.Y.2015-16, therefore, the latest profitable assessment year i.e. 2014-15 is taken as standard GP to compute the GP addition. If the standard GP at 4.65% is accepted then the GP addition for A.Y.2012-13 and A.Y.2013- 14 is computed at ₹ 5,25,667/- and ₹ 1,58,614/- respectively. Hence it is considered quite fair and reasonable to compute the GP addition for A.Y.2012-13 at ₹ 5,25,667/-. As all the expenditure has already been accounted while computing the basic GP percentage of 4.48, no further deduction for any expenses can be given.
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