2014 (12) TMI 567

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....Hon'ble ITAT was right in law in directing the AO to apply net profit rate of 6% against 12% whereas Hon'ble Punjab & Haryana High Court itself in different set of facts had applied net profit rate of 10%. ii) Whether on the facts and in the circumstances of the case, the Hon'ble ITAT was right in law in accepting the interpretation adopted by Vishakhapatnam Special Bench of ITAT in case of ACIT Vs Merilyn Shipping & Transporters {136 ITD 23 (SB) (Vishakhapatnam)} that the disallowance u/s 40(a)(ia) is to be made only in respect of payments which are outstanding at the end of financial year and payment of which is without deduction of tax (after end of Financial Year). iii) Whether on the facts and in the circumstances of ....

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....arate appeals. The Tribunal by way of the impugned order, affirmed the order passed by the assessing officer rejecting the accounts books but reduced the net rate profit to 6%. As regards additions made on account of deduction of tax at source, the Tribunal directed the assessing officer to examine the genuineness of payments. As regards work in progress, the Tribunal affirmed the order passed by the CIT (A). Counsel for the appellant submits that the Tribunal has not assigned any reason for applying a net profit rate of 6% particularly when the assessing officer has after due consideration of the facts given reasons for applying a net profit rate of 12%. As regards addition on account of failure to deduct tax at source, it is contended ....

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....bunal has merely restored the matter to the assessing officer by asking him to verify the transactions and if found to be correct, pass orders accordingly by holding as follows: - "8. On perusal of the record we find that the issue in this appeal is in relation to the disallowance made out of payments of labour charges paid for non deduction of tax at source under the provisions of section 194C of the Act. The said disallowance was made by invoking the provisions of section 40(a)(ia) of the Act. The Special Bench of Vishakhapatnam reported in ACIT Vs. Merilyn Shipping & Transports [136 ITD 23 (SB) (Vishakhapatnam)] had laid down the principle that where the amounts have been paid during the year under consideration itself and nothing is ....