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2017 (12) TMI 1352 - AT - Income TaxTrading addition - applying the higher gross profit rate - Held that:- Referring to the variation in the gross Assessment years : 2009-2010 2010-2011 profit rate as declared by the assessee, we are of the view that the gross profit rate of 7.32% of the last year as applied by the Assessing Officer is excessive and unreasonable and it would be fair and reasonable in the facts and circumstances of the case to apply the average gross profit rate of the relevant five years as worked out by the assessee at 4.42% in the submissions made before the ld. CIT(Appeals). We accordingly modify the impugned order of the ld. CIT(Appeals) on this issue and direct the Assessing Officer to re-compute the trading addition to be made to the total income of the assessee by applying the gross profit rate of 4.42% instead of 7.32%. The appeal of the Revenue for A.Y. 2009-10 is thus partly allowed. Addition of cash deposits found to be made in the undisclosed Bank account with ING Vysya Bank - Held that:- Matter is restored to the file of the Assessing Officer for deciding the same afresh after verifying the claim of the assessee on the basis of material found during the course of search. The appeal of the assessee for A.Y. 2009-10 is accordingly treated as allowed.
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