ORDER SALEEM ASGHAR MIAN, ACCOUNTANT MEMBER.- The department is in appeal against the order of the CIT (Appeals) Zone-I, Lahore for the assessm ent year 1988-89.
2. The assessee is a private limited company angaged in the purchases and export of carpets and manufacture and export of garments. The assessing officer had rejected the declared version and applied a GP rate at 20% on the sales. In appeal the CIT (Appeals) keeping in view the fact that in the such assessm ent made under section 62 for the assessment year 1984- 85, GP rate at 20% had been reduced to 18% passed similar orders.
3. In the P&L account a round addition of Rs. 200,000/- had been made out of the expenses claimed at Rs. 12,42,990/- for packing. This has been reduced by the CIT (Appeals) to Rs. 125,000/-.
The departmental appeal lies against both these decisions of the CIT (Appeals). The learned DR argued that the CIT (Appeals) was not justified to reduce the GP rate as the same rate was being applied in other parallel cases. As no paralel case was provided and it was also intimated that for the subsequent year, i.E., 1990-91 a GP rate at 18% has been up-held by the Tribunal in ITA No. 942/LB/91-92 (Assessm ent year 1990-91), we maintain the CIT (Appeals)'s order on this issue. The relief allowed in the packing expenses also is maintained considering the volume of sales of the assessee, the order of the CIT (Appeals) is maintain. The departmental appeal stands rejected.