2021 (4) TMI 842

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....nue : Shri Rohit Mujumdar, DR ORDER PER BENCH : This Revenue's appeal for AY.2011-12 arises from the CIT(A)-2, Hyderabad's order dated 26-02-2019 passed in case No.10034/GNT/CIT(A)-2/2016-17 in proceedings u/s.143(3) r.w.s. 254 of the Income Tax Act, 1961 [in short, 'the Act']. Heard both the parties. Case file perused. 2. The Revenue's sole substantive grievance raised in the insta....

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....epreciation is shown @ 1.33% for the year under consideration. The A.O has estimated the same @ 15% on gross receipts. The Hon'ble jurisdictional ITAT, Hyderabad in the following cases held that "the Profit rate of 8% would be fair and reasonable considering the nature of business carried on by the assessee. We therefore direct the A.O to estimate the Profit by applying the rate of 8% net of a....

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....erred by the Department has upheld the scaling down of the estimated profit to 8% on Contract Receipts and 5% on Sale of Plots, by the Hon'ble CIT. The Hon'ble ITAT while upholding the estimation of 8% on Contract Receipts and 5% on sale of plots has observed as follows :- "From the perusal of the Assessment Order it is observed that the AO did not reject the books of acc....

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....he has been guided by various judicial precedents (supra) as well as the nature of the taxpayer's contractual works performed. There can be hardly any dispute that a contractual assignment does not carry business risk at higher rate since involving asserted returns and all expenses relevant thereto. We thus find no merit in the former grievance. 3.1. Coming to the latter aspect of estimation of....