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TMI Blog2014 (1) TMI 1319X X X X Extracts X X X X X X X X Extracts X X X X ..... ered while working out the GP rate – thus, it cannot be again considered for the purpose of estimated disallowance - the Assessing Officer is directed to disallow 5% of the expenses excluding the purchases and other expenses which are considered while working out the gross profit rate – Decided partly in favour of Assessee. - ITA No.535/Del/2011 - - - Dated:- 2-8-2013 - Shri G. D. Agrawal And Shri I. C. Sudhir,JJ. For the Appellant : Shri Anil Sharma, Advocate. For the Respondent : Smt. Renuka Jain Gupta, Sr. DR. ORDER Per G. D. Agrawal,VP :- This appeal by the assessee is directed against the order of learned CIT(A)-I, New Delhi dated 12th November, 2010 for the AY 2002-03. 2. Ground No.1 of the assessee's appeal i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) and the appellant company be given a fresh opportunity of being heard for the above the appellant shall always remained obliged. 8. The appellant company prays for condemnation of delay caused in filing the said appeal. 9. The appellant craves leave to alter, amend, amplify, add any other grounds during the hearing." 6. The facts of the case are that in this case, original assessment was completed under Section 144 due to non-compliance of the assessee company. On appeal, the ITAT set aside the matter to the file of the Assessing Officer with the direction to the assessee to cooperate in all respect with the Assessing Officer and to appear before the Assessing Officer within three months of the service of the order of ITAT. However, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hen the GP rate is applied, the purchases, depreciation etc. are already considered while applying the GP rate, therefore, further disallowance out of such expenses cannot be made. He stated that the actual expenses after the working of the GP claimed by the assessee was only Rs. 1,25,96,367/- and, therefore, only 5% of such expenses can be disallowed which would be amounting to Rs. 6,29,818/-. He, therefore, submitted that the addition/disallowance made by the Assessing Officer should be modified accordingly. 9. Learned DR, on the other hand, stated that the assessee does not deserve any relief because neither in the original assessment proceedings nor in the set aside assessment proceedings, assessee attended. She stated that in appeal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g AY was 13.05% whereas the same for this AY is 11.85%. It is proposed adopt and apply the GP rate of 13.05% for the AY 2002-03 also." 11. From the above, it is evident that the Assessing Officer proposed to apply the GP rate of the immediately preceding year. Now, whether the GP rate of immediately preceding year is 13.05% or 12.97%, it is a matter of computation from the details available on record before the Assessing Officer. We, therefore, direct him to verify the GP rate of the immediately preceding year and apply the same. So far as disallowance of 5% is concerned, Assessing Officer himself has proposed to disallow the expenses claimed in the profit loss account. However, while making actual disallowance, the Assessing Officer ha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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