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TMI Blog2015 (4) TMI 104X X X X Extracts X X X X X X X X Extracts X X X X ..... nces of the case, and in law, the Income Tax Appellate Tribunal is right in coming to the conclusion that addition made by the Assessing Officer and confirmed by the Commissioner of Income-tax (Appeals)-II, Surat, on G.P. Rate is not correct ?" 3. The facts of the present case are that the return of income has been filed on 31.10.2003 declaring total income of Rs. 1,10,463/- by the assessee. The return of income was processed u/s. 143(1) of the IT Act and statutory notice u/s. 14392) was issued and served upon the assessee. In response to the said notice, the assessee furnished necessary details. After considering the material on record, the AO has passed the assessment order. Against the said assessment order, the assessee has preferred a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d not come back from Surat till date, we are of the opinion that it was not a fit case where Gross Profits could be estimated by applying the decisions of the Tribunal in cases relied upon by the CIT(Appeals) and conversed by the DR. 15. Having held as above, we are of the opinion that so far as justification of the procedure for computing the assessee's taxable income, adopted by the AO is concerned, the same can not be said to be a best judgment approach as envisaged in the provisions of section 143/144 of the Act,so far as facts of the present case are concerned because, if we consider the facts of assessee's case from the angle of net profit, the Revenue had accepted net profit rate of 0.42% in the immediate previous year, whereas, in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s year by applying the net profit rate as accepted in the immediate previous year." 6. The above analysis by the Tribunal shows that the Tribunal has partly allowed the appeal on the basis of reasonings given by the Tribunal. The findings of facts in the peculiar facts and circumstance of the case, go to show that there was fall in gross Profit rate and the justification of profit ought to have been seen from the angle and not net profit rate. Thus, we are in complete agreement with the findings of facts by the Tribunal and the decision of the CIT(Appeals) which is placed reliance on certain authoritative decisions of the Tribunals were misplaced and were misreading of the provisions of law as they were not applicable in the present case. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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