TaxTMI 
TaxTMI 
2016 (7) TMI 1092
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.... (hereinafter referred to as - the Tribunal). The subject matter of the present appeal pertains to the assessment year 2008-09 and through the same, the assessee seeks to raise the following substantial questions of law :- "1. Whether the ITAT was justified in confirming addition @ 6% on estimation basis without considering the past record and arbitrary addition to declared income by the authorities below ? 2. Whether the order of the Tribunal is based on extraneous considerations and perverse deserve to be set aside being against the provisions of law ?" After hearing learned counsel for the parties and perusing the record with their assistance, the relevant facts, which have emerged, are that the assessee, who is a....
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.... the preceding years. On such basis, it was prayed that Net Profit Rate @ 2.5% be applied in his case. However, the Commissioner dismissed the appeal, which gave a cause to the assessee to further take the matter in appeal before the Tribunal. The assessee's case before the Tribunal was that original purchase vouchers, books of accounts, attendance cards of the labourers with their complete addresses, complete list of sundry creditors and the Net Profit Rate applied in the case of the assessee for the last several preceding assessment years had been produced by him but the same had not been considered and therefore, it was prayed that the matter be either remitted back to the Commissioner for fresh adjudication or that the appeal of the....
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.... complete list of sundry creditors and applied Net Profit Rate for earlier assessment years. The Tribunal acknowledged the availability of purchase vouchers of various materials to the extent of 83-90% but failed to return any finding on the claim of the assessee with regard to having placed on the record the complete list of sundry creditors. So far as applying of Net Profit Rate is concerned, evidence was brought on record by the assessee that for the assessment year 2003-04, the applied Net Profit Rate was 3%, for 2005-06 the same was 1.08% and for the preceding assessment year 2007-08, the same was 2.29%. Without spelling out any reasons for the same, the Tribunal ignored the above rates and chose to apply the Net Profit Rate of 6% b....
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....ue shall not be taken to be affirmation of order of the Tribunal on merits. Further, the legal issue as claimed by the revenue is being left open to be adjudicated in an appropriate case." While referring to the afore-quoted order, learned counsel submitted that since the Revenue's appeal seeking enhancement in the Net Profit Rate had been dismissed as withdrawn only in view of the circular issued by the C.B.D.T., New Delhi and there having been no decision on merits, in case the matter is to be remanded back to the Tribunal, the Revenue should also be permitted to raise the issue for enhancement of the Net Profit Rate. Ms. Prerna, who appeared on behalf of the assessee, opposed the grant of such prayer by urging that the appeal f....