TaxTMI 
TaxTMI 
2010 (12) TMI 775
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....order dated 21.8.2007 while admitting the appeal had framed the following substantial questions of law for determination by this Court:- i) Whether on the facts and circumstances of the case, the decision of the Tribunal upholding the net profit rate at 13% of the total contract receipts (as compared to 8% fixed under Section 44AD) and 10% assessed by Assessing Officer in reassessment proceedings and 8% assessed in original proceedings, is perverse in nature and erroneous in law and, therefore, liable to be set aside? ii) Whether the rate of 10% applied by Assessing Officer and 13% applied by the CIT and upheld by the Tribunal are arbitrary in nature, fixed on mere conjectures and surmises without any material on record?" &n....
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....to the partners. Thereafter, the Assessing Officer vide order dated 30.3.2001 applied a net profit rate of 10% on the total receipts against the rate of 8% shown by the assessee. Feeling aggrieved, the assessee took the matter in appeal only to the extent of rate of profit at 10% against the rate of 8% before the Commissioner of Income Tax (Appeals) [in short "the CIT(A)"]. The CIT (A) not only upheld the order of the Assessing Officer but enhanced the rate of net profit from 10% to 13%. Accordingly, the income of the assessee was enhanced by Rs.1,84,089/-. On further appeal by the assessee, the Tribunal vide order dated 16.12.2005 upheld the order of the CIT(A) and dismissed the appeal. Hence, the present appeal by the assessee. 4.....
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....iled return with receipts exceeding Rs.40 lacs thus ruling out application at rate of 8%. The facts for the year i.e. asstt. years 1995-96 and 1996-97, appellant was asked as to why the net profit rate be not applied to results of the year as applied in the succeeding years and the income be not enhanced in view of section 251(1)(a) of I.T. Act. 2.4 The Ld. AR for appellant chose to rely on the decision of Hon'ble ITAT, Amritsar Bench in ITA No. 733(ASR)/1990 dated 28.04.1999 and mentioned that in view of reasons recorded, the results declared by the assessee at the most were subjectable application of net profit rate of 8%. 2.5 The submissions of the appellant are considered in light of facts in subsequent assessment years ....
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....net profit rate of 10%. The assessee in the original return concealed substantial receipts from the revenue department and again with the A.O. as per books of accounts of the assessee filed revised return showing the receipts but even proper receipts were not shown, therefore, the return was further revised on 26.6.1997 and gross receipts were shown at Rs.71,54,922/-. The CIT(A) considered the facts of the case and bogus entries made on account of cash credits itself on the bank withdrawals and the entries made in the books of the assessee was of the view that it is a fit case for enhancement of the income. The CIT(A) considering the totality and the circumstances enhanced the net profit rate from 10% as applied by the A.O. to 13%. The lear....