G.P. rate shall be accepted if it is higher than average G.P. rate of last three years immediately preceding the relevant year:

AO rejected assessee’s books and calculated assessee’s income at a G.P. rate higher than that declared by the assessee. Hon’ble ITAT reversed AO’s order as it found that G.P. rate declared by assessee was higher than the average G.P. rate of last three years immediately preceding the relevant year. Hon’ble High Court held that no question of law arises out of the same since findings of ITAT were purely factual in nature. Accordingly, Revenue’s appeal was dismissed.

[KIRAN INDUSTRIES PVT. LTD. - TAX APPEAL NO.449 of 2011 - GHC]