Income Tax Ordinance (XXXI of 1979)---

----Ss. 22 & 32(3)---Income from business---G. P. rate ---Add-back---Assessee had returned income and applied G.P. rate of his own---Assessing Officer, rejecting the declared version, adopted his own estimate of sales and income and applied high G.P. rate ---Assessee contended that his application of G.P. rate was quite in consonance with other parallel cases ---Validity---G.P. rate applied by assessee was directed to be accepted as the same had been applied in other cases for the preceding year---Assessing Officer had not cited any distinguishing feature to deviate from the treatment meted out to assessee in the past ---Assessee's appeal was accepted in circumstances.

Muhammad Zulfiqar Khokhar for Appellant.

Mustafa Ashraf, D.R. for Respondent.

Date of hearing: 25th March, 1997.

ORDER

This appeal has been filed by the appellant against the order of the CIT(A) for the assessment year 1991-92. The only issue pressed by the learned A.R. of the assessee is the application of G.P. rate.

2. The brief facts of the case are that the appellant a registered firm derives income as a ghee dealer. The appellant filed a return to declare income at Rs.76,500. The case was selected for total audit. The appellant declared that sales at Rs.23,971,700 yielding a G.P. rate of 0.56% . The assessing officer for various reasons mentioned in the body of the assessment order rejected the declared version and estimated the sales at Rs.24,025,474 to which G.P. rate at 0.98% was applied. Add-backs in the profit and loss accounts were also made. The appellant being aggrieved filed an appeal before the CIT(A) who upheld the action of the assessing officer.

3. We have heard the parties and gone through the orders passed by the officer below. During the course of the hearing the learned A.R. urged that the application of G.P. rate at 0.98% was totally unwarranted and unjustified as in the case of other Ghee Dealers a rate of 0.5% is accepted. In support of his contention he cited the following two cases;

(1) M/s. Jaffar Brothers Ghee Dealer, Sadiqabad.

(2) M/s. Afzal Brothers Khan Bela.

The learned A.R. further submitted that the certificate from the company in respect of purchases and commission was not submitted to the assessing officer as the Ghee Corporation of Pakistan did not issue the certificate despite several requests. The same is available with the assessee which have been placed on record. It was further submitted that the G.P. rate of the assessee was accepted for the assessment year 1990-91.

4. We have considered the arguments put forth by the A.R. Even if we ignore the certificate issued by the GCP at this stage the G.P. rate at 0.56% is directed to be accepted as the same has been applied in other cases and also in the assessee's case for the year 1990-91. For the assessment year under appeal the assessing officer has not cited any distinguishing features to deviate from the treatment meted out in the past. We therefore, direct that the G.P. rate of 0.56% may be accepted.

C. M. S./410/Trib. Appeal accepted.