TaxTMI 
TaxTMI 
2018 (9) TMI 1692
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....e heard together and are disposed of by this common order for the sake of convenience and gravity. 3. We first take up ITA No.4518/Del/2018 A.Y.2009-10. Representatives of both the sides were heard at length. Briefly stated that the facts of the case are that the appellant company is engaged in the business of civil construction. For the year under consideration it has shown sales of Rs. 62.17crores besides other income of Rs. 55.87 lacs. During the course of the scrutiny assessment proceedings the Assessing Officer noticed that there is decline in the profit ratio when compared with that of earlier years. The Assessing Officer observed that in A. Y. 207-08 the N. P. rate was 6.27% which declined to 5.17 % in A. Y. 2008-09 and further decl....
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.... is on the higher side considering the nature of business of the assessee. It is the say of the counsel that the net profit rate is on decline since past assessment years per contra the DR strongly supported the findings of the Assessing Officer. 7. We have carefully considered the orders of the authorities below. There is no dispute that the net profit rate is declining from A. Y. 2007-08 onwards which can be seen from the fact in A. Y. 2007-08 net profit rate was 6.27% which dropped down to 5.17% in A. Y. 2008-09 and further came down to 3.95% during the year under consideration. Thus, the fall in net profit rate cannot be brushed aside lightly. However, we find that the estimation of profit at 5.2% is from reasonable on the facts of the....
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....ase of Vijaya Bank 323 ITR 166 has categorically held that if the asset side is reduced by the provision it amounts to writing of the debts. Drewing support from the ratio laid down by the Hon'ble Supreme Court (supra), we direct the Assessing Officer to delete the disallowance on account of provision for bad debts. 11. In the result, the appeal filed by the assessee is partly allowed. ITA No.1974/Del/2018 A. Y. 2012-13 12. Facts on record show that in the year under consideration the nature of business of the assessee remained the same as it was in A. Y. 2009-10 (supra). For similar reasons the books of accounts were rejected by the Assessing Officer but in this year the Assessing Officer has disallowed 10% of the expenses which were c....