2013 (9) TMI 745

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....pondent : S. C. Dixit ORDER (Delivered by Hon'ble Dr. Satish Chadra J.) Present Appeal is filed by the department under Section 260-A of the Income Tax Act 1961, against the judgment and order dated 07.09.2007 passed by the Income Tax Appellate Tribunal, Lucknow in I.T.A. No.591/Luc/2006 for the assessment year 2002-03. On 19.02.2008, a coordinate Bench of this Court has admitted t....

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....t of low gross profit rate can be made especially when the assessee has no details to establish the veracity of abnormal increase in certain expenses ?. The brief facts of the case are that the assessee is a Government undertaking and is engaged in the purchase and supply of essential commodities to the peoples on rates cheaper than the market rate through its units located in various parts of ....

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....hat the audit report under section 44 AB has not been filed and the G.P. Rate shown by the assessee was on lower side. He further submits that the profit and loss account and balance-sheet were provisional and the assessee was unable to provide various documents to prove his submission. Lastly, he justified the impugned order. On the other hand, Sri S. C. Dixit, learned counsel for the assessee....

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....el etc. and also Mandi Fee. Needless to mention that estimation of the G.P. Rate is a question of fact and no substantial question of law arose as per the ratio laid down in the cases of Har Gopal Singh vs. CIT; (2005) 273 ITR 507 P & H; and Kansara Bearing Private Limited vs. ACIT; (2004) 270 ITR 235, Raj. The lower G.P. Rate never attracts the addition and it cannot be a ground for rejection ....