2022 (5) TMI 726

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.... order dated 18.12.2009; as against returned income of Rs. 1,58,170/-. While making assessment, accounts books were rejected u/s. 143(3) of the I.T. Act and net profit rate of 12% was applied on the gross contract receipt. However, deduction on account of material & labour charges was allowed by the Assessing Officer. The CIT Karnal set aside the aforesaid order dated 18.12.2009 passed u/s. 143(3), by passing order dated 03.02.2012 u/s. 263 of the I.T. Act. Vide fresh assessment order dated 15.03.2013, the assessee's income was assessed at estimated figure of Rs. 25,45,350/- by applying net profit rate of 12% on net contract receipts amounting to Rs. 2,12,11,265/-; as against returned income of Rs. 1,58,170/-. The assessee filed appeal ....

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....u/s. 263(1) 8      Reply Regarding Assessment Proceedings for A.Y. 2007-08 9      Order of Hon'ble Punjab & Haryana High Court in case of CIT Vs. M/s. Prabhat Kumar Contractor 10      Order of ITAT - Chandigarh in the case of ACIT Circle Kurukshetra Vs. Jaswant Singh Contractor 11      Order of ITAT Chandigarh in the case of I.T.O. Ward-2 KUK Vs. Ram Kumar 12      Order of ITAT Chandigarh in the case of the DCIT Circle KUK Vs. Sukhvinder Singh Contractor 13      Order of ITAT Chandigarh in the case of the ITO ward-2 Jind Vs. M/s. Rajinder Parshad Jain 14.      ....

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....hich lower rate of net profit was adopted for estimating for assessee's income. He took us through the aforesaid paper book (referred to in foregoing paragraph (B) of this order, in which various decisions of ITAT have been compiled, to plead that the estimation of income @ 12% of net contract receipts, was excessive and unreasonable in the facts and circumstances of the case. The Ld. AR for the assessee submitted before us that the AO should be directed to estimate the assessee's income @ 8% of net contract receipts, in consonance with the order of coordinate Bench of ITAT, Delhi in the case of Nand Kishore Pundir Vs. ITO (order dated 09.07.2015 for A.Y. 2009-10 in ITA No. 3597/Del/2014), in which, in similar facts and circumstance....