2011 (5) TMI 1024

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.....K.Mishra, ARs . For the Respondent : Shri S.C.Mohanty, DR. ORDER Shri K.K. Gupta, Accountant Member : This appeal by the assessee agitates the order of the learned Commissioner of Income-tax (Appeals) on the solitary issue of estimating the Net Profit at 10% of the contract receipts on the facts and circumstances of the assessee's case being a contractor. 2. The brief facts as were....

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....Assessing Officer under various heads. However, he sought to hold a view that the income from the contract work resulting in gross receipt of Rs. 91,82,399 should be subjected to tax at net profit of 10% thereof under the provisions of Section 144 and also that the machinery hire charges received amounting to Rs. 11,60,000 should be taxed @5% thereon. He also noted that the Assessing Officer was j....

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....again without any cogent basis as can be perused in his order. In other words, he tried to tax a portion of salary to the partners by enhancing the profits as returned by the assessee by incorporating the disallowance of remuneration to partners which otherwise was acceptable to the assessee at 8% under the provisions of Section 44AD. The learned Counsel for the assessee agreed to the proposition ....