TMI Blog2015 (2) TMI 906X X X X Extracts X X X X X X X X Extracts X X X X ..... nces of the case, considering that the assessee had urged, during the course of the proceedings, that the cost of raw material had increased. Likewise, the rate of interest payable had increased, considering that it had borrowed amounts in the routine course of its business. That explanation, was furnished to argue that the rate of net profit was 1.04%, as opposed to the rate of the previous years ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -10. The AO had proceeded to work out after rejection of the assessee's books of account the gross profit rate at 5.35% and on that basis, determined the net profit to be 1.96% - based upon the previous year's assessments. 2. The assessee deals in electrical goods and lamination and stamping. The assessee's business yields scrap; for the relative period it had sold a quantity of 5 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Breaking Company. 4. The assessee's appeal succeeded in full before the CIT(Appeals). The ITAT confirmed those findings. The ITAT's findings are as follows: At this juncture, it is relevant to mention that the assessee sold steel scrap weighing 51,84,336 Kgs. for ₹ 2.92 crore giving per Kg. average rate of ₹ 5.65 per Kg. The AO has not disputed the quantitative aspect of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hin iron sheets of .27 mm to .50 mm thickness. Nothing has been brought on record to controvert these findings recorded by the id. CIT(A). Even from the assessment order, we are unable to find out as to whether these two so-called comparable cases were confronted to the assessee before applying their rate of scrap sale. Be that as it may, it is seen that the assessee sold scrap during the year at ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sfied that the AO did not apply his mind to the circumstances of the case, considering that the assessee had urged, during the course of the proceedings, that the cost of raw material had increased. Likewise, the rate of interest payable had increased, considering that it had borrowed amounts in the routine course of its business. That explanation, was furnished to argue that the rate of net profi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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