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TMI Blog2014 (2) TMI 270X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Income Tax Appellate Tribunal("the Tribunal" for short) dated 12.4.2013 raising following questions for our consideration:- "A. Whether on the facts and in the circumstances of the case as well as in law, the Appellate Tribunal was justified in upholding the rejection of the book result and applying gross profit rate @ 11% by reversing the finding given by CIT(A) as to the nature of busine ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ejecting the book results but chose to adopt GP rate at 8% observing that the assessee was in the business of cattle feed as well as cotton business and in the business of cattle feed, the GP rate is higher as compared to the cotton business. Under such circumstances, the Appellate Authority restricted the additions on the GP rate at 8% and allowed the assessee's appeal in part. This was the bone ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bitrary valuation of closing stock itself renders the books of account incomplete, incorrect and unreliable as held by the Hon'ble Supreme Court in Sanjeev Wollen Mills vs. CIT (2005) 279 ITR 434 (SC). In this fact situation, the limited issue that survives for consideration is whether the Assessing Officer is justified in applying GP rate at 17.82%. 11. The reasoning given by Ld CIT(A) for apply ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... can also not be sustained. 12. On perusal of the assessment order, it is noticed that the assessee has shown gross profit rate of 17.82% in assessment year 2005- 06 and 10.26% in assessment year 2004-05. Keeping in view the aforesaid rates of gross profit shown by the assessee itself in preceding 2 years, it is considered proper to direct the Assessing Officer to apply gross profit rate of 11% as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Assessing Officer, after detailed discussion, concluded that the book results were not accurate. 6. If this be so, the only question is what should be the correct estimate of the assessee's income. In such a situation, there is bound to be some estimation and guess work when the Tribunal on the basis of the recent rate of return of the assessee's business in his own case, estimated the GP rate a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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