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of <h1>ITAT Ahmedabad: Appeals Allowed for Asst. Years 1985-86 & 1987-88, Net Profit Rate 15%</h1> <h3>Jay Builder Versus Asstt. CIT, Cir-6 (2), Ahmedabad</h3> The Appellate Tribunal ITAT Ahmedabad partially allowed the appeals filed by the assessee for Asst. Years 1985-86 and 1987-88. The Tribunal directed the ... - Issues involved:The issues involved in this judgment are related to the validity of section 147-148 notice and assessment, determination of previous year for taxation, estimation of cash receipts, application of gross profit rate, allowance of deductions, additions under various sections, charging of interest, treatment of firm as unregistered, and jurisdiction of assessment actions.For Asst. Year 1985-86:1. The CIT(Appeals) erred in holding the section 147-148 notice and assessment as valid.2. Dispute over the previous year for taxation - Financial Year vs. July to June.3. Challenge regarding the completed assessment of the previous year.4. Disagreement on the assessment being an over-pitched assessment.5. Dispute over the estimation of cash and cheque receipts.6. Application of gross profit rate on cheque receipts only.7. Argument for applying 8% net profit to total receipts.8. Claim for deduction of expenses incurred for vacating occupants.9. Issue of additions under various sections and the year of search.10. Dispute over the charging of interest without mention in the assessment order.11. Disagreement on taxing the firm as unregistered.12. Jurisdictional challenge regarding the assessment order.13. Dispute over the calculation of income from construction business.For Asst. Year 1987-88:1. Challenge to the validity of section 147-148 notice and assessment.2. Dispute over the Assessing Officer's resort to section 154 for assessment.3. Disagreement on the estimated sale consideration and actual receipts.4. Issue of alleged receipt of on-money without supporting evidence.5. Dispute over completion of floors and justification for adding on-money receipts.6. Application of gross profit rate and allowance of expenditures.7. Dispute over the timing of final conveyance deeds and assessment basis.8. Taxing the firm as unregistered and charging of interest.9. Jurisdictional challenge regarding the assessment order.In the judgment, the Appellate Tribunal ITAT Ahmedabad addressed the appeals filed by the assessee for Asst. Years 1985-86 and 1987-88. Various grounds were raised, including challenges to the validity of notices, estimation of receipts, application of profit rates, allowance of deductions, and jurisdictional issues. The Tribunal considered the evidence, including seized documents, and directed the Assessing Officer to apply a net profit rate of 15% on cash receipts for the assessment years, rather than taxing the entire sum of 'on money' received in cash. This decision partially allowed the appeals filed by the assessee for both years.
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