No addition for mere sharp decline in G.P ratio in absence of collaborating evidence

Brief of the case

In the case of of Pr. CIT vs. M/s Hues India Pvt. Ltd.,  High court of Rajasthan bench at Jaipur held that that quantum and penalty proceedings under the Act stand on a different footing and relying on decision in case of CIT v. Gotan Lime Khanij Udyog reported in 2002 (256) ITR 243 and Malani Ramjivan Jagannath v. Assistant Commissioner of Income Tax 2007 (207) CTR 19 held that only decline in GP ratio could not be the ground to made addition.

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