TaxTMI 
TaxTMI 
2005 (8) TMI 312
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....against the unlawful picking of the case for scrutiny assessment. We have heard the rival submissions and perused the relevant material on record. Recently, the Hon'ble Supreme Court in the case of Pahwa Chemicals (P) Ltd. vs. CCE (2005) 274 ITR 87 (Se) has held as under: "If, therefore, the Act vests in the Central Excise Officers jurisdiction to issue show-cause notices and to adjudicate, the Board has no power to cut down that jurisdiction. However, for the purposes of better administration of levy and collection of duty and for the purpose of Classification of goods the Board may issue direction allocating certain types of work to certain officers or classes of officers. Circulars issued by the Board dt. 27th Feb., 1997, an....
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....d the expenditure on material. carriage and labour vis-a-vis gross receipts by dividing the year into two parts, namely, one from 1st April, 1997 to 31st Aug., 1997 and the other from 1st Sept., 1997 to 31st March, 1998. It was observed that as against the payments received in the later period amounting to Rs. 3,55,739, the assessee had debited expenses of Rs. 12,52,410. On being called upon to explain the reasons, it was stated that the payments against labour, wages and material used during the work done in the month of August, 1997 were made in the month of September, 1997 due to non-availability of funds. It was further noted that the assessee had claimed expenses on labour at Rs. 19,97,010, which was at 47.2 per cent of the gross recei....
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....of deduction for depreciation, interest and remuneration to partners at 10.15 per cent, 8.99 per cent and 8.76 per cent for asst. yrs. 1995-96 to 1997-98, respectively. He took us through several orders passed by this Bench in which net profit rate of 8 per cent has been held to be applicable even though the gross receipts exceeded the amount specified under s. 44AD. It was shown that the Tribunal in these cases has applied 8 per cent profit rate by taking assistance from the rate stipulated in s. 44AD. In the opposition, the learned Departmental Representative strongly relied on the impugned order. It was submitted that the AO had done a good exercise to unearth the discrepancies and bring on record the clear picture of profit. 5. We ha....
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....is year and the case did not strictly fall within the parameters laid down under s. 44AD. However, in order to determine the correct rate of profit, we are regularly. seeking guidance from this section and applying 8 per cent net profit rate. This net profit rate is further subject to interest and remuneration to partners as provided in proviso to s. 44AD(2). In our consideration opinion, it would be fair and reasonable if the total income of the assessee is computed in this manner. By translating it into the actual calculation, the amount of net profit after depreciation but before remuneration and interest to partners comes at Rs. 3,38,236. The amount of salary and interest to partners has been shown at Rs. 2,52,249. If this amount is ded....