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2015 (9) TMI 752 - GUJARAT HIGH COURT

2015 (9) TMI 752 - GUJARAT HIGH COURT - TMI - Estimation of GP - ITAT reducing the estimation of GP made by the AO and upheld the rejection of books of accounts - Held that:- Tribunal in the impugned judgment has found that the Commissioner (Appeals) has observed that the Assessing Officer had compared the appellant’s gross profit with four different turnovers and that in case of three of the companies, the turnover was comparable to the case of the assessee company and they were also in similar .....

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BR> Unaccounted cash credit - addition u/s 68 deleted by ITAT - Held that:- This court finds substance in the submissions advanced by the learned counsel for the appellant, hence, admit. The following substantial question of law arises for consideration:-

“Whether the Income Tax Appellate Tribunal has substantially erred in upholding the deletion of addition of ₹ 39,43,083/- made under section 68 of the Income Tax Act, 1961 in case of credits received from Abloom Investment Pri .....

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.T.A. No.1350/Ahd/2012 by proposing the following two questions:- [A] Whether the Appellate Tribunal has substantially erred in upholding the decision of the CIT(A) in deleting the addition of ₹ 39,43,083/- made u/s 68 of the Act, in case of credits received from Abloom Investment Pvt. Ltd., even though the identity, genuineness and creditworthiness were not proved? [B] Whether the Appellate Tribunal has substantially erred in upholding the decision of the CIT(A) in reducing the estimation .....

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ccounts, the Assessing Officer carried out independent search on Prowess data base and found out comparable companies for calculating gross profit of the assessee company. After comparison of the gross profit and taking average thereof, the Assessing Officer adopted the gross profit of the company at 2.74% and made a total addition of ₹ 4,30,19,408/-. In the assessee s appeal, the Commissioner (Appeals) upheld the rejection of the books of account. He, however, observed that the Assessing .....

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aya Feeds Limited was only 1.83 crores as against the assessee s turnover of more than 40 crores whereas the other three firms had turnover of more than 20 crores. He accordingly was of the view that the turnover of the other three firms was comparable to the assessee and that they were also in similar line of business. He accordingly directed the Assessing Officer to compare the average gross profit with three comparable companies and work out the gross profit of the assessee company. He also d .....

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