2016 (2) TMI 163

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....,670/- out of expenses on account of purchase of grit, rodi, bajri after rejecting books of accounts in view of specific defects. 2. Whether on the facts and in the circumstances of the case and in law the ld. CIT(A) has erred in deleting the disallowance of Rs. 6,87,519/- out of labour and wages expenses. 3. Whether on the facts and in the circumstances of the case and in law the ld. CIT(A) has erred in deleting the disallowance of Rs. 20,39,33/- out of petrol & diesel, vehicle repairing and depreciation. 4. Whether on the facts and in the circumstances of the case and in law the ld. CIT(A) has erred in deleting the disallowance of Rs. 4760/- out of telephone expenses. 2. The brief facts for the issue under co....

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....emuneration to partner, to partners and depreciation are more and for this reason the n.p. comes down does not after the situation. The N.P. rate has to be seen before deprecation, interest and remuneration to partners. If this aspect is taken into consideration, the NP rate declared by the assessee is better as compared to earlier year. 3.3.3 In this assessment year, the Assessing Officer while disallowing 20% of petrol & diesel expenses, vehicle repairing expenses and deprecation has also included the expenses incurred on JCB machines, mixture machines, tractors, road rollers etc. on which there cannot be any element of personal use. Further more, in this assessment year, the net profit before depreciation, interest and remunerat....

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....ghtfully been deleted by the ld. CIT(A) and all the ground taken by the Revenue should be dismissed. 2.3 The ld. DR relied on the order of the AO and submitted that where books of accounts have been rejected, the AO has to make reasonable estimate of the net profit rate and in the instant case after examining the submission of the assessee, the AO has made the disallowances which should be confirmed in the hands of the assessee. 2.4 We have heard the rival contentions and perused the material available on record and have gone through the order and finding of the ld. CIT(A). In the past, the Coordinate Benches have taken a consistent view that NP rate which should be considered for examination is NP rate before depreciation, interest a....