I.T.A. NO.639/LBI/DB OF 1989-90 VS I.T.A. NO.639/LBI/DB OF 1989-90
1997 P T D (Trib.) 2056
[Income-tax Appellate Tribunal Pakistan]
Before Saleem Asghar Mian, Accountant Member and
Sardar Muhammad Anwar A. Khan, Judicial Member
I.T.A. No.639/LBI/DB of 1989-90, decided on 28/11/1995.
(a) Income Tax Ordinance (XXXI of 1979)---
----S.32 (3)---Method of accounting---Profit and loss account---Expenses-- Additions---Validity---Assessee's declared version was rejected---In profit and loss account, addition was made out of expenses---Commissioner of Income Tax (A) reduced additions---Tribunal maintained relief allowed in expenses, considering volume of sales of assessee.
(b) Income Tax Ordinance (XXXI of 1979)---
----S. 62---Assessment---G. P rate ---Rejection---G.P. rate applied by assessee on sales was rejected and Assessing Officer applied 20% G.P. rate on, ales-- Commissioner of Income Tax (A), keeping in view that in such assessments made under S.62, G. P. rate at 18 % was applied, reduced it to 18 %-- Tribunal upheld reduction in G.P. rate by C.I.T.(A) in the light of its earlier order passed in the case of assessee.
I.T.A. No.942/LB of 1991-92 ref.
Muhammad Akram Tahir, D.R. for Appellant.
Mushtaq Ahmed, I. T. P. for Respondent.
Date of hearing: 28th November, 1995.
ORDER
SALEEM ASGHAR MIAN (ACCOUNTANT MEMBER).---The Department is k in appeal against the order of the CIT(Appeals) Zone-I, Lahore for the assessment year 1988-89.
2. The assessee is a private limited company engaged in the purchase and export of carpets and manufacture and export of garments. The assessing officer had rejected the declared version and applied a GP rate at 20% on the sales. In appeal the CIT (Appeals) keeping in view the fact that in the such assessment made under section 62 for the assessment year 1984-85, GP Q rate at 20% had been reduced to 18% passed similar orders.
3. In the P&L account a round addition of Rs.200,000 had been made out of the expenses claimed at Rs. 12,42,990 for packing. This has been reduced by the CIT (Appeals) to Rs.125,000. The departmental appeal lies against both these decisions of the CIT (Appeals). The learned DR argued that the CIT (Appeals) was not justified to reduce GP rate as the same rate was being applied in other parallel cases. As no parallel case was provided and it was also intimated that for the subsequent year i.e., 1990-91 a GP rate at 18% has been up-held by the Tribunal in ITA No.942/LB/91-92 (Assessment year 1990-91), we maintain the CIT (Appeal's) order on this issue. The relief allowed in the packing expenses also is maintained considering the volume of sales of the assessee, the order of the CIT (Appeals) is maintained. The departmental appeal stands rejected.
C.M.S./222/Trib.Appeal rejected.