2016 (8) TMI 211

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....ile admitting the matter on 12.04.2006, the following substantial question of law was framed by the Court for consideration :- "Whether, in the facts and circumstances of the case the Income Tax Appellate Tribunal was right in law in holding that even when there are no material defects in the books of accounts maintained by the appellant, gross profits shown by the appellant can still be estimated and adjusted?" 3. The facts of the case are as under :- The assessee - M/s. Kandla Bulk Cargo files is engaged in the business of transport contract. It has got various contracts for transportation of material from various companies. The company also receives contracts for transportation of materials for various destinations and these contracts....

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....s drawn the attention of this Court to paragraph 10 of the judgment and order of the Tribunal which reads as under :- "10. After considering the various materials placed on the record, we agree with the contention of the learned D/R that the gross profit shown at 10.64% was very low as compared to gross profit of the preceding two years. Therefore, keeping in view the gross profit rate shown by the assessee in the preceding two years as well as the gross profit estimated by the Assessing Officer on the basis of gross profit rate shown in the assessment of M/s. M.R. Transport Co., we modify both the orders of lower authorities and direct the Assessing Officer to restrict the addition by taking gross profit at 15% as against gross profit rat....