GP on unaccounted Sales cannot be less than that of Accounted Sales

Argument on behalf of Revenue that the CIT(A) has committed error in modifying the GP rate at 03.56% as against 07.29% applied by the AO on suppressed sales. In this regard, we note that the AO issued notice under s.142(1) of the Income Tax Act, 1961  asking the  assessee to show-cause as to why the GP or unaccounted sales should not be estimated at par with the GP on accounted sales. The AO noted that the assessee did not furnish any record in response to such notice and merely stated that the ITAT has estimated the GP on the lower side in the subsequent assessment years. The CIT(A) has mer...