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2021 (4) TMI 502 - MADRAS HIGH COURTGross profit determination - Tribunal, applied the decision in A.Vajjiram & Bros [2008 (8) TMI 528 - MADRAS HIGH COURT] and fixed the gross profit at 8% - assessee did not cooperate in the assessment by producing certain labour registers, which was called for by the Assessing Officer and therefore, the AO, taking note of Section 44AD of the Act, which is a special provision for computing profits and gains of business on presumptive basis - assessment for A.Y. 2012-13 net profit was comutation at 3.21% of the Gross receipts - HELD THAT:- Before us, the appellant has filed a chart showing a comparison of the figures for the assessment years 2012-13 to 2019-20 and we find that the net profit ratio to turnover in percentage ranges between 2.86% and 3.42%. Further, from the assessment order for the year 2017-18, it is seen that the Assessing Officer adopted 3.16% and held the same to be reasonable and completed the assessment by order dated 21.12.2019. Thus, we find that the Tribunal committed an error in reversing the order passed by the CIT(A) and restoring the order of the Assessing Officer. The tax case appeals are allowed and the order passed by the Tribunal is set aside and the substantial questions of law are answered in favour of the appellant/assessee.
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