https://www.taxtmi.com/caselaws?id=770082 ITAT Chennai held that when books of accounts are rejected, the AO must adopt the GP rate from the assessee's preceding assessment years in the same line of business. The assessee's GP rate for 2018-19 was higher than rates for 2014-15 to 2017-18. Since the declared GP rate was better than previous years and only purchase omissions existed (not sales), no addition was warranted. The CIT(A)'s reduction of GP rate from 8.5% to 8% was overturned, and the entire addition was deleted, allowing the assessee's appeal. en-us Thu, 01 May 2025 00:00:00 +0530 Tue, 06 May 2025 09:58:53 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=770082 ITAT Chennai held that when books of accounts are rejected, the AO must adopt the GP rate from the assessee's preceding assessment years in the same line of business. The assessee's GP rate for 2018-19 was higher than rates for 2014-15 to 2017-18. Since the declared GP rate was better than previous years and only purchase omissions existed (not sales), no addition was warranted. The CIT(A)'s reduction of GP rate from 8.5% to 8% was overturned, and the entire addition was deleted, allowing the assessee's appeal. Case-Laws Income Tax Thu, 01 May 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=770082