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TMI Blog2014 (2) TMI 319X X X X Extracts X X X X X X X X Extracts X X X X ..... is profit as 5.95%, which was much more than second traders Mrs. Kedarnath Nathmal - When example of two local traders has been taken by the assessing officer and the profit shown by the assessee was more than one of such traders, there was no reason to discard the profit at the rate of 5.95% - Decided in favour of assessee. - Income Tax Appeal No. - 137 of 2001 - - - Dated:- 21-1-2014 - Hon'bl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... year 1991-92, showing his gross profit on total sale as 5.95%. The assessing officer has noted that the assessee has submitted his book of account, audited copy of the account was also submitted, but inventory of closing stock has not been shown to the assessing officer. Assessing officer has noted that total sale is Rs. 44,44,243/-. The assessing officer held that since the closing account could ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , which was dismissed. The appeal has been admitted only on the question as to whether, the CIT (Appeal) as well as Tribunal is legally justified in applying 8% gross profit and whether the same is based on material and valid reason. We proceed to examine the said question alone. Neither in the judgment of Tribunal nor in the judgment of Commissioner (Appeal) any reason has been given for estima ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rofit at the rate of 5.95%. We are satisfied that there was no material justifying for applying 8% gross profit and further no reason or material has been referred in the order of the Commissioner (Appeal) and Tribunal. Hence we are of the view that the question framed in the appeal is to be answered in favour of the assessee and against the revenue. In result, the appeal is allowed. The ord ..... X X X X Extracts X X X X X X X X Extracts X X X X
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