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2020 (7) TMI 628 - HC - Income TaxDisallowance u/s 40A(3) - assessable income was arrived by applying a percentage rate on unaccounted turnover - HELD THAT:- This Court in the case of CIT Vs. Mohammed Dhurabudeen [2007 (7) TMI 635 - MADRAS HIGH COURT] wherein it was held that when the income of the assessee was computed by applying GP rate and no deduction was allowed in regard to purchases of the assessee, there was no need to look into the provisions of Section 40A(3) and Rule 60DD(j) of the Relevant Rules, that no disallowance could have been made in view of the provisions of Section 40A(3) of the Act read with Rule 60DD(j) of the Relevant Rules as no deduction was allowed and claimed by the assessee in respect of purchases and that when the GP rate was applied, that would take care of everything and there was no need for the Assessing Officer to make scrutiny of the amount incurred on the purchases by the assessee. CIT(A) considered the facts, applied the law in the aforementioned decision and partly allowed the appeal filed by the assessee. This order has been confirmed by the Tribunal after examining the facts. No substantial question of law
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