net profit rate Archives

Reduction in Gross/Net Profit rate no ipso facto a ground for making disallowance of expenses

administrator April 23, 2021 Income Tax, ITAT

Reduction in Gross/Net Profit rate not ipso facto a ground for making disallowance of expense but a triggering point for verification of expenses claimed. ABCAUS Case Law CitationABCAUS 3493 (2021) (04) ITAT Important case law relied referred:ITO vs. Dr. Mahendra Kumar Agarwal In the instant case, the assessee …

Bogus purchases additions not based on average GP or NP declared deleted by ITAT

administrator July 20, 2019 Income Tax, ITAT

Bogus purchases additions not based on average GP or NP declared by the assessee in preceding years or some reasonable or proper criteria deleted by ITAT ABCAUS Case Law Citation:ABCAUS 3071 (2019) (07) ITAT This appeal by the assessee was directed against the order of the CIT (A) …

Profit rate applied on bogus purchases reduced as assessee had also paid VAT on purchases

administrator May 20, 2019 Income Tax, ITAT

Profit rate on bogus purchases reduced as assessee also paid VAT on purchases. ITAT directed AO to recompute income after applying profit rate of 8% ABCAUS Case Law Citation: ABCAUS 2946 (2019) (05) ITAT The assessee had appealed against the orders of Commissioner of Income Tax (Appeals) against …

Mere agreeing to increased net profit rate by itself no ground for penalty u/s 271(1)(c)

administrator March 24, 2019 Income Tax, ITAT

Mere agreeing to increased net profit rate, by itself was no ground to levy penalty u/s 271(1)(c) when it was already higher compared to preceding assessment years – ITAT ABCAUS Case Law Citation: ABCAUS 2840 (2019) (03) ITAT Important Case Laws Cited/relied upon by the parties Harigopal Singh …

Mere fall in net profit rate by itself no ground to increase it as compared to the preceding years

administrator October 27, 2018 Income Tax, ITAT

Mere fall in net profit rate by itself no ground to increase profit rate as compared to the preceding assessment years as profit cannot be static each year – ITAT ABCAUS Case Law Citation: ABCAUS 2598 (2018) (10) ITAT The appellant assessee was aggrieved by the order of …

Net profit ratio of 3 percent in contract business allowed as in earlier years even lower profit rate was consistently accepted without objection-ITAT

administrator April 27, 2017 Income Tax, ITAT, Judgments

Net profit ratio of 3 percent in contract business allowed as in earlier years even lower profit rate was consistently accepted without objection by the Department – ITAT ABCAUS Case Law Citation: ABCAUS 1225 (2017) (04) ITAT The Grievance: The appellant assessee was aggrieved by the order passed by …

There is no hard and fast rule of earning same net profit rate over different years. Additions without plausible reasons or rejecting books of accounts bad

administrator September 4, 2016 Income Tax, ITAT, Judgments

There is no hard and fast rule of earning same net profit rate over different years. Additions made without any plausible reason or rejecting books of accounts bad – ITAT ABCAUS Case Law Citation: 1008 2016 (09) ITAT Assessment Year: 2010-11 Brief Facts of the Case: The appellant …

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