Mere Downfall in GP Ratio not give authority to revenue to make addition

Sureshbhai Vihabhai Patel Vs ITO (ITAT Ahmedabad) There is no dispute to the fact that there is a downfall in the gross profit ratio declared by the assessee in the year under consideration in comparison to the earlier years. But the controversy arises whether the downfall in the gross profit ratio gives the authority to the revenue to make any addition without pointing out any defect in the amount of purchases, sales stock shown in the books of accounts. The answers stands in negative. However, from the preceding discussion, we find that it has been alleged by the authorities below that the a...