https://www.taxtmi.com/caselaws?id=400845 The ITAT partly allowed the appeals of two assessee firms, a rice mill and a company, concerning GP rate discrepancies for AYs 2014-15. The ITAT disagreed with the AO's rejection of books based on suspicions of cash purchases, emphasizing the lack of discrepancies in audited accounts. After considering the assesses' GP rates (2.31% and 1.80%) and industry standards (6.2% and 7%), the ITAT directed the AO to compute GP rates at 2.5% for both, providing partial relief. The judgment stressed the importance of factual justifications for GP rate estimations over industry averages. en-us Wed, 21 Oct 2020 00:00:00 +0530 Fri, 20 Nov 2020 13:26:44 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=400845 The ITAT partly allowed the appeals of two assessee firms, a rice mill and a company, concerning GP rate discrepancies for AYs 2014-15. The ITAT disagreed with the AO's rejection of books based on suspicions of cash purchases, emphasizing the lack of discrepancies in audited accounts. After considering the assesses' GP rates (2.31% and 1.80%) and industry standards (6.2% and 7%), the ITAT directed the AO to compute GP rates at 2.5% for both, providing partial relief. The judgment stressed the importance of factual justifications for GP rate estimations over industry averages. Case-Laws Income Tax Wed, 21 Oct 2020 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=400845