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TMI Blog2016 (2) TMI 163X X X X Extracts X X X X X X X X Extracts X X X X ..... incurred for the purposes of the businesses, we are unable to accede to the position adopted by the AO. Hence we do not see any infirmity in order of ld. CIT(A) which is confirmed. - Decided against revenue - ITA No. 660/JP/14 - - - Dated:- 6-1-2016 - SHRI R.P. TOLANI, JM SHRI VIKRAM SINGH YADAV, AM For The Assessee by : Shri Mukesh Khandelwal CA For The Revenue by : Shri Raj Mehra (JCIT) ORDER PER SHRI VIKRAM SINGH YADAV, AM This is an appeal filed by the Revenue against the order of CIT(A)-II, Jaipur dated 15.07.2014 wherein the Revenue has taken the following grounds of appeal which are reproduced as under: 1. Whether on the facts and in the circumstances of the case and in law the ld. CIT(A) has erred ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ppeal before the ld. CIT(A) who has deleted all of this additions. The relevant finding of the Ld. CIT(A) are at para 3.3.2 to 3.3.3 of its order which read as under: 3.3.2 In all the assessment years, the ITAT deleted the trading additions on the ground that the net profit rate before depreciation, interest an d remuneration to partners was progressive and that the past history of the assessee could not be ignored in ITA no.1220/JP/2010 for A.Y. 2007-078 the ITAT observed as under: The trading results shown by the assessee is better as compared to trading result shown in earlier year. The department s contention that after depreciation interest and remuneration to partners, NP rate shown by the assessee is lower does not have m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... % which is higher than the n.p. rate as disclosed in the past years and the same has been accepted by the ld. AO but at the same time the ld. AO has made adhoc disallowance which will result net profit rate of 16.06% subject to interest, salary and depreciation which is extremely on higher side and at the same time, does not have any appropriate basis for such expenses. The ld. AR further submitted that in the past the Coordinate Bench of ITAT have consistently decided in favour of the assessee and held that NP rate has to be seen before depreciation, interest and remuneration to partners and where the net profit rate declared by the assessee is better as compared to earlier years, the same should not be disturbed. The ld. AR accordingly su ..... X X X X Extracts X X X X X X X X Extracts X X X X
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