2002 (1) TMI 14

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ct, 1961, directed against the judgment of the Income-tax Appellate Tribunal, Jodhpur, dated November 24, 2000. We have heard Mr. Sundeep Bhandawat, learned counsel for the Revenue, and Mr. Anjay Kothari, for the respondent-assessee, for the purpose of admission of the appeal. The respondent-assessee firm is a civil contractor. It filed return of receipts of Rs. 1,63,86,523 giving a net prof....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....t were rightly rejected by the Assessing Officer which was confirmed by the Commissioner of Income tax (Appeals) committed an error in reducing the rate of net profit from 12.5 percent to 10 percent without assigning any good reasons. Learned counsel has placed reliance on a decision of the apex court reported in CIT v. Devi Prasad Vishwanath Prasad [1969] 72 ITR 194, and a judgment of the Kerala ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... the Tribunal, which are extracted as follows: "(a) Most of the new contracts taken this year had been taken under keen competition from leading other contractors, and the policy of business was also changed to have less margin of profit, greater net returns, so that the available machinery which in absence of work, remained idle, is put to use regularly and continuously. The rise of net receip....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....el in the country. This was beyond expectations right from rations to petrol, diesel, parts, everything did show an upward trend and so also the labour and this factor did cut down the profits of the assessee-firm to a greater extent. (c) It will be necessary to say that in general, i.e., in so far as the trading of the firm is concerned it has shown better performance as will be revealed from ....