2016 (2) TMI 129

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.... ORAL ORDER (PER : HONOURABLE MR.JUSTICE AKIL KURESHI) 1. These tax appeals involve the same assessment order and arise in similar background. In Tax Appeal No.911 of 2015 for assessment year 2008-09, the revenue has suggested following question for our consideration: " a. Whether, on the facts and circumstances of the case, the ITAT is right in reducing the profit estimated from 16% to 8....

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....results, proceeded to make additions on the basis of gross profit rate. The CIT(A) in a detailed judgment came to the conclusion that the net profit of the assessee should be estimated at the rate of 16% of the contract receipts in all the assessment years. 4. The assessee dissatisfied with such decision of the CIT(A), approached the Tribunal. The Tribunal in the impugned order reduced the gros....

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....k order No.ED/C.E./MRW/Work-4-07/220 dated 25.4.2007 and work order No.ED/C.E.MRW/Work-1/07/218 dated 25.4.2007 respectively. 10. The DR has not disputed the above explanation of the assessee. 11. Considering the entire facts and circumstances of the case, we find that the estimate of net income from the contract work at the rate of 16% of the turnover was without any basis. We find that as ....

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....f 16% of the contract amount was excess. Instead, adopting 8% rate prescribed in section 44AD of the Act, the Tribunal reduced the profit estimation. 6. In our opinion, the entire examination was on the basis of evidence on record and would not call for any question of law. It is true that the provisions of section 44AD of the Act would not ipso facto apply to every acts of the Tribunal merely ....