1982 (7) TMI 166

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....77-78. 2. In the several grounds of appeal, trading addition of Rs. 24,722 has been disputed. The facts briefly stated are that the assessee is a dealer in cloth on wholesale basis. During the accounting period relevant to the assessment year under appeal, it declared GP of Rs. 1.12 lacs on total turnover of Rs. 14.96 lacs reflecting a rate of 7.5 per cent. The ITO considered the GP rate shown ....

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....essee is aggrieved and is in second appeal before the Tribunal. Shri N.M. Ranka, the ld. counsel for the assessee at the outset has pointed out that the percentage of profit earned by the assessee on certain sales at 13.5 per cent and 20 per cent as worked out by the ITO is not correct. According to him, the correct percentages were at 9 per cent and 14 per cent respectively. He further submitted ....

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....parable case. He then argued that taking into consideration the assessee's past history, the rate shown by the assessee at 7.5 per cent was reasonable, and there was no case for estimating the profits. The GP rate shown by the assessee in earlier years as contained in its letter before the AAC are as under: Asst. yr. Sales GP Additions GP rate Deleted by Tribunal 1970-71 15....

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.... ITO. From this fact, it is evident that the ITO was influenced for adopting higher rate of profit by referring to the incorrect figures of percentages of GP in two sales transactions. We are also in agreement with the ld. counsel of the assessee that two comparable cases relied upon by the ITO are not comparable because of wide variation in turnover and one case mixed nature of sales being retail....