TMI Blog2013 (9) TMI 745X X X X Extracts X X X X X X X X Extracts X X X X ..... te is a question of fact and no substantial question of law arose as per the ratio laid down in the cases of Har Gopal Singh vs. CIT; [2004 (8) TMI 35 - PUNJAB AND HARYANA High Court] - The lower G.P. Rate never attracts the addition and it cannot be a ground for rejection of the books as per the ratio laid down in the cases of International Forest Company vs. CIT [1974 (12) TMI 33 - JAMMU AND KAS ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... justified in deleting the additions made by the Assessing Officer on the unaudited provisional profit and loss account and the balance sheet, by taking instance of the gross profit rate of the earlier year prompted by the unverifiable substantial increase in certain expenses, especially when such finding of the Assessing Officer has not been controverted by the Income Tax Appellate Tribunal ? i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the A.O. has made the additions of ₹ 2,56,64,318/-. The First Appellate Authority has given a partial relief to the assessee. However, the Tribunal has deleted the said addition. Being aggrieved, the department has filed the present appeal. With this background, Sri D. D. Chopra, learned counsel for the department has justified the order passed by the A.O. He, at the strength of the writ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d the copies were submitted. He also submits that the assessee is a Government undertaking. The auditors will have to be appointed by the Government. So, the provisional audit report was submitted and no defect was found. To support his argument, he relied on the ratio laid down in the case of Pandit Brothers vs. CIT, 26 ITR 159. After hearing both the parties and on perusal of record, it appea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Moreover, in the instant case, provisional audit reports were filed and the A.O. has not pointed out any defect. Reasons for lower G.P. Rate were given but the same were not examined by the A.O. When it is so, then we find no reason to interfere with the impugned order passed by the Tribunal. The same is hereby sustained along with the reasons mentioned therein. The answer to the substanti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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