2015 (6) TMI 462

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....order impugned in the present appeal by the revenue under Section 260A of the Income Tax Act, 1961 confirmed the order of the CIT(A). The AO had contrary to the assessee's case, rejected the books of account and assessed the income at Rs. 1,17,92,350/-. 2. The assessee was engaged in the construction business and claimed various expenses as well as credits. In the course of assessment, the AO....

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....have also observed the comparable case of Shri Mukesh Kumar Sharma who had disclosed net profit rate of 1.1% on contract receipts of Rs. 4,50,86,832 for the assessment year 2008-09, where the Assessing Officer applied net profit rate of 8% on contract receipts for the assessment year 2008-09. However, in appeal the net profit rate of 1.3% was upheld. It is noted that there was a substantial increa....

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....eipts. It is not Proper on the Part of the Assessing Officer to apply ad hoc and arbitrary net profit rate of 5% on contract receipts for this year and to make addition of Rs. 74,92,760 in the business profit of Rs. 43,63,846 shown by the appellant without referring to any comparable case in the matter. Keeping all the factors in mind the net profit is estimated @ 2% i.e, 45,02,424/-. The appellan....