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TMI Blog2024 (10) TMI 864X X X X Extracts X X X X X X X X Extracts X X X X ..... f the view that there was no valid reason for the AO in rejecting the book results. Referring to comparative chart for five years we notice that the gross profit rate has actually improved in this year vis- -vis the immediately preceding year. As rightly pointed out by Ld A.R, there was sharp fall in the Duty draw back and export incentives in this year and the same is the main reason for the fall in the net profit ratio. Hence, we are of the view that, in the facts and circumstances of the case, there is no reason to estimate the profit of the year. Accordingly, we set aside the order passed by Ld CIT(A) and direct the AO to accept the book results, i.e., the addition made by the AO should be deleted. Appeal filed by the assessee is allowe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ld. AR submitted that the assessee does not maintain Wavers Register, Washing Register, Finishing Register, Clipping Register etc., with regard to payment of labour charges. The ld. AR submitted that the assessee has maintained job sheets for each of the activity and posting is made in the books of account directly from the job sheet. Accordingly, he submitted that the observations made by the AO are not relevant to the assessee. Hence, the AO could not have rejected the book results. He further submitted that the assessee has declared gross profit rate of 12.06% during the year under consideration as against the gross profit rate of 11.58% in the immediately preceding year. Accordingly, he submitted that there is actually improvement in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... BACK 25338553 24499504 27380108 23074603 21403298 IMPORT LICENCE 8145618 34729723 14702173 15387369 12080700 IMPORT LICENCE PERCENTAGE 2.77 11.66 4.34 5.61 4.57 NET PROFIT 868285 15482836 11971664 9887416 9553638 NET PROFIT PERCENTAGE 0.30 5.20 3.54 3.61 3.62 On a perusal of the above chart, we notice that the gross profit rate has actually improved in this year vis- -vis the immediately preceding year. As rightly pointed out by Ld A.R, there was sharp fall in the Duty draw back and export incentives in this year and the same is the main reason for the fall in the net profit ratio. Hence, we are of the view that, in the facts and circumstances of the case, there is no reason to estimate the profit of the year. 6. Accordingly, we set aside t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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