TaxTMI 
TaxTMI 
2007 (1) TMI 225
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....receipts are shown at Rs. 3,12,64,977, on which a GP of Rs. 9,01,249 is declared, which gives GP rate of 2.88 per cent. The comparative figures in asst. yrs. 2001-02 and 2002-03 are given in the following chart: ----------------------------------------- Asst. yr. Receipts GP GP Rate ----------------------------------------- 2001-02 1,03,81,762 7,35,253 7.08 2002-03 1,15,93,407 8,15,512 7.00 2003-04 3,12,64,977 9,01,249 2.88 ----------------------------------------- 3. The AO wanted to know the reason of the steep fall of the GP rate. The....
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....Now coming to the merits of this addition, the learned Authorised Representative has submitted that in such cases where the assessee undertakes labour-contracts, the competition is very hard, and that due to rise in price of diesel and the requirement of skilled labour in this year, the last year's results are rendered non-comparable. According to learned Authorised Representative the cases of similar assessees of the same assessment year who are in this line, are more akin to the results declared by the assessee and can be used as a guiding factor. The contention of the learned Departmental Representative is just opposite and he has insisted that the assessee's own results of the past year should be relied. Rival contentions have been circ....
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....n the earlier year the position was just opposite. Keeping in view, the topsy-turvy happened between two consecutive years as above, we are left with no other option but to follow our own order given in exactly similar facts and the circumstances. Therefore, by following the above Tribunal order and further to be just and fair, keeping in view the facts in totality, we adopt GP rate of 3 per cent. The declared receipts are not in dispute. Hence, this issue is partly allowed. 8. The next ground i.e., ground No. (3) reads as under: "In the facts and in the circumstances of the case, the learned CIT(A) has grossly erred in holding that the learned AO was well justified in making following disallowances out of the expenses claimed by the ....
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....(A) has grossly erred in upholding and maintaining the double levy of tax on Rs. 40,305 on the interest of income-tax refund, which the appellant has disclosed in its P&L a/c, by upholding that it was an income of other sources, besides the same even if it is held as income from other sources, yet the fact remained was that the same in no circumstances, without first reducing from the income from business, could have been added further in the taxable income resulting in double taxation of the said income. He ought to have upheld so. The Hon'ble Tribunal may very kindly reverse the decision of both the lower authorities. 6. On the facts and in the circumstances of the case, the learned CIT(A) has grossly erred in upholding the action of t....
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....ve been considered in the light of the available evidence on record. It has been submitted that these FDRs are purchased under compulsion to obtain contracts, so the receipt of interest has to be taxed only when the interest is actually received by the assessee. We do not agree with the learned Authorised Representative. The FDRs may have been taken under compulsion but the interest is not a part of business receipts. This has to be taxed as an income from other sources, on accrual basis because the assessee has been following mercantile system of accounting. But We agree with the learned Authorised Representative that the rate of interest adopted by the learned AO is on the higher side. The rate of 8 per cent per annum is just and reasonab....