2013 (1) TMI 923

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....ned and shown. The AO observed that majority of the expenses claimed to have been paid in cash. Complete vouchers have not been produced and not subjected to verification. The AO, therefore, doubted the accuracy of the book results and accordingly, rejected the same and by relying upon the decision of ITAT Hyderabad Bench, computed the income by applying the profit rate of 12.5%. However, interest paid to the partners and depreciation was allowed and income of the assessee was determined at ₹ 1,27,98,840/-. The addition was challenged before the ld. CIT(A) and it was submitted that 12.5% gross profit has been applied without looking into the past history and comparable cases, therefore, the profit rate applied is very high and exorbit....

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....the case of the same assessee for the assessment year 2005-06 in ITA No. 704 of 2008 dated 17.09.2010 in which the CIT(A) has confirmed the addition of ₹ 1,00,000/- on the identical issue and the departmental appeal has been dismissed. The same order has been followed in assessment year 2002-03 in the case of the same assessee in ITA No. 65/Agr./2006 and the departmental appeal has been dismissed vide order of the Tribunal dated 04.02.2011. The ld. Counsel for the assessee submitted that past history of the assessee should be accepted and the profit rate should be further reduced and relied upon the following decisions : (i). Decision of Hon'ble M.P. High Court in the case of Dinanath Dubey vs. CIT, 160 ITR 1, in which it was held -....