2011 (4) TMI 653

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....This appeal has been filed by the revenue under Section 260A of the Income Tax Act, 1961 (in short "the Act") against the order dated 27.11.2008 passed by the Income Tax Appellate Tribunal, Chandigarh Bench "A", Chandigarh, (hereinafter referred to as "the Tribunal") in ITA No. 433/Chandi/2008, relating to the assessment year 2001-02, raising the following substantial question of law:- "Whether on the facts and in the circumstances of  the case the Hon'ble Tribunal was right in law in scaling down of net profit rate to 5% against 8% on the work done by the assessee?"   3. Put shortly, the facts necessary for adjudication as narrated in the appeal are that upon notice under Section 148 of the Act dated 26.3.2003, the assessee....

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....was completed under Section 144 on 03.03.2003 and the order was duly served upon the assessee. The Assessing Officer rejected the accounts of the assessee and determined the profit from the contract work @ 10% of the gross work done by it. The assessment, so framed, was challenged before the first appellate authority where it was partly allowed and after giving appeal effect, the net profit was worked out at 1.236% vide order dated 05.08.2003. The order of the first appellate authority was challenged before the first appellate authority wherein vide order in ITA No. 576/Chandi/2003, the net profit was determined at 1.5% of the total work done. On the basis of the aforesaid order for assessment year 2000-01, the assessee for the impugned ass....