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2017 (10) TMI 1159 - HC - Income TaxGP determination - excluding certain items of turnover from the gross turnover of the assessee - Tribunal directed that ₹ 31,07,29,889/- be excluded from the total turnover and that the additional 0.44% be levied on ₹ 59,45,76,475/- - Held that:- The turnover has been returned by the assessee itself and such returned turnover of the assessee included the items which are now ordered to be excluded by the Tribunal. Further, the assessee itself has no case that in the gross turnover for the previous years relied on by the first appellate authority, it had excluded the items which are now ordered to be excluded by the Tribunal. If that be so, the assessee could not have contended that for the assessment year in question, the Revenue should not have estimated its gross turnover including the items that are now ordered to be excluded. Yet another fallacy in the order of the Tribunal is that, the Tribunal has ordered that 0.44% be estimated on ₹ 59,45,76,475/-. According to us, if it is to be so estimated, firstly, the percentage of the gross profit should have been worked out on the reduced gross turnover applying the gross profit of ₹ 14,99,85,294/-. If it is so done, the percentage of gross profit for the Assessment Year in question would have been 25.23%, and if so, the average percentage of gross profit would have been 19.86%, as against 16.94% now adopted. Consequently, the addition to be made would also have been 3.36% as against 0.44% now ordered by the Tribunal. Similar exercise would have been needed for the other years as well. - Decided in favour of the Revenue and against the assessee.
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