https://www.taxtmi.com/caselaws?id=786659 Disparity in net profit rates between co managed manufacturing units producing substantially the same product can indicate profit suppression and require comparative adjustment; where such suppression is evident, the appropriate remedy is to apply a reasonable comparative net profit rate-for example an average of the year under appeal and preceding years-to compute eligible unit profits for tax deduction purposes. Applying this approach here reduced the assessed disallowance: the net profit rate of 5.83% (average of three years) is to be used to recompute allowable deduction, and the appeal is partly allowed in favour of the assessee. en-us Fri, 13 Feb 2026 00:00:00 +0530 Tue, 17 Feb 2026 07:29:09 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=786659 Disparity in net profit rates between co managed manufacturing units producing substantially the same product can indicate profit suppression and require comparative adjustment; where such suppression is evident, the appropriate remedy is to apply a reasonable comparative net profit rate-for example an average of the year under appeal and preceding years-to compute eligible unit profits for tax deduction purposes. Applying this approach here reduced the assessed disallowance: the net profit rate of 5.83% (average of three years) is to be used to recompute allowable deduction, and the appeal is partly allowed in favour of the assessee. Case-Laws Income Tax Fri, 13 Feb 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=786659