2014 (8) TMI 167

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... tax payment out of the income estimated by applying net profit rate without estimation of income at net profit rate being subject to such deduction?" The assessee, said to be deriving his income from contract work, filed the return for Assessment Year 1999-2000 declaring the income of Rs. 2,08,230/- with tax audit report.The same was processed under Section 143(1) on 27.03.2000 at the same figure. The assessee had shown total contract receipt of Rs. 1,69,05,812/-. There was material supplied by the department at Rs. 25,95,066/-. The assessee had shown gross profit of Rs. 17,35,435/-. The assessee had also executed contract work through sub-contractor and received sub-letting commission at Rs. 34,958/-. The case was picked up for scrutiny.....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ssment on the basis of net profit rate but then, considered the ground urged on behalf of the assessee that it had paid a sum of Rs. 1,70,316/- towards sales tax and such payment of sales tax had been allowed as deduction by the Revenue Authorities in other cases. The CIT(A) held that the AO was not justified in not allowing the amount of sales tax paid at Rs. 1,70,316/-; and directed the AO to allow the same after verification of the amount. In the Revenue's appeal against the order so passed by the CIT(A), the ITAT found the case of the assessee covered by the decision rendered in other cases and held that the direction of the learned CIT(A) to AO, to allow the payment of sales tax after verification of the amount, was quiet in order. S....