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Satish Agarwal Vs. DCIT & Ors cases.

further held that regarding estimation of the GP rate the A.O. had relied on the sister concern's GP rate while the AR of the appellant has insisted that its case is different from the sister concerns because he was not exporting his product. In view of this submission and the consistent stand of the Hon'ble ITAT that past history of the appellant is the best guide for determining the GP rate of the assessee, the GP rate chart was perused and it is seen that the appellant had shown a GP rate of 13.57% for A.Y. 2007-08 on total turnover of Rs. 39,89,388/- and during this A.Y. he has shown the GP of 12.57% on decreased turnover of Rs. 39,45,037/-. It is a generally accepted principle that in manufacturing industry the GP rate improves with decline in turnover. Therefore the GP is estimated at 15% and after giving a set off of GP declared by the appellant of Rs.4,90,000/-, a trading addition of Rs. 1,01,755/- has been confirmed. Accordingly, part relief was allowed by the ld CIT(A).