2012 (10) TMI 331

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... 1. We have heard Shri Shambhu Chopra, learned counsel appearing for the revenue.   2. In this Income Tax Appeal under Section 260-A of the Income Tax Act, 1961, the revenue has raised following substantial questions of law:- "1. Whether the Hon'ble ITAT was legally correct on the facts and in the circumstances of the case in applying profit rate of 4.72% as against profit rate of 8%....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....f account of the assessee have been rejected by the AO. 3. So far as the first question is concerned, after rejecting the account books without adding any income, profit was calculated at the rate of 8%. The AO allowed misc. deductions, salary to partners, interest to partners, depreciation and after adding interest income of Rs.66,119/-, and assessed the total income at Rs.18,09,690/- on the o....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....by the assessee before the CIT (A) on the questions of materials supplied by the principals of the assessee. 6. We do not find that the Tribunal has committed any error on accepting the declared profit rate of 4.72%. In fact the AO did not give any reasons, which have been given by the ITAT in restoring the profit rate of 4.72%. On the question of deductions of material and interest the matter ....