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TMI Blog2012 (9) TMI 548X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee’s case and also better than the comparable case of Sat Paul & Sons quoted by the Assessing Officer for AY 2007-08. Appeal allowed in favor of assessee. - ITA No.3543/Del/2011 & 3755/Del/2011 - - - Dated:- 6-7-2012 - SHRI G.D.AGRAWAL, AND SHRI I.C.SUDHIR, JJ. Revenue by : Shri R.S.Negi, Sr. DR. Assessee by : Shri Ved Jain Ms. Rano Jain, CAsn and Shri V.Mohan, Advocate. ORDER PER G.D.AGRAWAL, VP : ITA No.3543/Del/2011 is the appeal by the Revenue in which following ground is raised:- On the facts and in the circumstances of the case, the ld.CIT(A) has erred in directing to work out profit by applying a G.P. rate of 4% as against 4.9% applied by the AO without appreciating that G.P. rate declared in the compa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... against 4.90% applied by the Assessing Officer. Aggrieved with the order of learned CIT(A), both the parties are in appeal before us. 6. At the time of hearing before us, it was pointed out by the learned counsel that at page 7 of the assessment order, the Assessing Officer has given a comparative position of immediately preceding two years from which, it is evident that the GP rate of AY 2005-06 and 2006-07 was 2.37% and 2.65% respectively, which has been accepted by the Revenue as reasonable. In this regard, he referred to the assessment order placed at pages 57 to 59 of the paper book for AY 2006-07. He also referred the four comparable cases given by the Assessing Officer at page 6 of the assessment order and stated that only compara ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erence, the same is reproduced below:- Name of Assessee Asstt. Year % Gross Profit Jai Parkash M/s Narwana Timber Store, Karnal 2004-05 6.00% Jai Parkash M/s Narwana Timber Store, Karnal 2005-06 4.34% Neeraj Jain Prop. Jagdama Timber Store, Karnal 2006-07 5.66% Sat Paul Sons, M/s Kaithal Timber Store, Karnal 2007-08 3.53% Total 19.53% Average Rate 19.53/4 = 4.90% 9. At page 7 of the assessment order, the Assessing Officer has given the comparative position of sale and gross profit in the case of the assessee. The same is also reproduced herein below for ready reference:- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sing Officer himself considered the GP rate of 2.65% in AY 2006-07 to be reasonable. In AY 2005-06, in assessee s own case, the GP rate of 2.37% was accepted by the Revenue. In view of the totality of above facts, we do not find any justification for applicability of GP rate of 4.90%. The gross profit rate disclosed by the assessee at 3.63% is better as compared to earlier two years of assessee s case and also better than the comparable case of Sat Paul Sons quoted by the Assessing Officer for AY 2007-08. In view of the above, we do not find any justification for sustaining the part of the trading addition by applying GP rate of 4%. The same is deleted. 12. In the result, the appeal of the assessee is allowed while the appeal of the Rev ..... X X X X Extracts X X X X X X X X Extracts X X X X
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