COMMISSIONER OF INCOME TAX Vs. MOTIA RANI BHATIA

JUDGEMENT

(1.) The present appeal has been filed under Section 260A of the Income Tax Act, 1961 (hereinafter referred to as "Act, 1961") challenging the order dated 16th October, 2009 passed by the Income Tax Appellate Tribunal (for brevity "Tribunal") in ITA No. 2244/Del/2009 for the Assessment Year 2004-05.

(2.) Ms. Suruchii Aggarwal, learned standing counsel for the Revenue submitted that the Tribunal had erred in law in deleting the addition of Rs. 11,45,839/- made by the Assessing Officer on account of low gross profit rate. She submitted that the Assessing Officer was justified in estimation of a reasonable gross profit of 10% keeping in view the gross profit rate of 24% shown by the respondent-assessee in some years.

(3.) However, upon a perusal of the file we find that the said addition was deleted both by the Commissioner of Income Tax (Appeals) [for short "CIT(A)"] and the Tribunal on the ground that no discrepancy was found in respect of book profit declared by the assessee. In fact, CIT (A) in its order has observed as under :-