2011 (3) TMI 165

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....-Revenue.   AJAY KUMAR MITTAL, J.   This appeal under Section 260A of the Income-Tax Act, 1961 (for short "the Act") has been filed by the Revenue against the order dated 30.6.2010, passed by the Income Tax Appellate Tribunal Chandigarh Bench 'A', Chandigarh (in short "the Tribunal") in ITA No. 416/CHD/2010, relating to the assessmnt year 2006-2007. 2. The following substantial ....

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....able income of Rs. 57,49,202/-. The case was, however, referred for special audit under Section 142(2A) of the Act and on certain discrepancies being pointed out by the special auditor, the assessing officer rejected the books of accounts of the assessee and completed assessment under Section 185/143(3) at Rs. 1,15,37,190/- vide order dated 28.5.2009 by treating the firm as Association of Persons.....

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....he CIT(A), however, held that in the light of a judgment of the Tribunal of Delhi Bench the assessee-firm was liable to be assessed as firm.   5. Still not satisfied, the assessee carried appeal before the Tribunal. The Tribunal, vide order dated 30.6.2010 partly accepted the appeal and directed the assessing officer to compute the income by applying net profit rate of 10% in view of the d....

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....fit rate of 10% accepted by the Tribunal on the contract receipts was justified or it should have been 12% as adopted by the assessing officer.   9. The Tribunal while examining the question of application of net profit rate relied upon a decision of this Court in Income Tax Appeal No. 689 of 2009 (Raja Ram Contractors vs. C.I.T. Ludhiana), decided on 7.4.2010 wherein this Court in the fac....