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2017 (8) TMI 287 - HC - Income TaxAddition on account of net profit rate @ 6% - Held that - This Court vide order (2016 (7) TMI 1092 - PUNJAB & HARYANA HIGH COURT) allowed the appeal and set aside the order, Annexure A-3. Further the matter had been remitted to the Tribunal for a fresh decision on merits after scrutiny of all material placed before it by the assessee in accordance with law. It had also been noticed therein that such observation would not preclude the Revenue from moving any application for revival of the present appeal since the liberty for the same was granted by this Court while permitting the appeal to be withdrawn. Thus after hearing learned counsel for the parties, the appeal is allowed and the order passed by the Tribunal is set aside. The matter is remanded to the Tribunal to adjudicate the issue on merits after affording an opportunity of hearing to the parties in accordance with law.
Issues:
1. Application for recalling an order and revival of appeal. 2. Interpretation of legal provisions under the Income Tax Act, 1961. 3. Assessment of income for a civil contractor. 4. Appeal against the order of the Commissioner of Income Tax (Appeals) and the Income Tax Appellate Tribunal. Issue 1: Application for recalling an order and revival of appeal The appellant sought to recall an order dated 8.2.2016, where the appeal was dismissed with liberty to revive if necessary. The Court, after considering the application and reasons recorded, recalled the order and revived the appeal bearing ITA-28-2013. The appeal was disposed of accordingly. Issue 2: Interpretation of legal provisions under the Income Tax Act, 1961 The appeal under Section 260A of the Income Tax Act, 1961 was filed against the order of the Income Tax Appellate Tribunal. The substantial questions of law raised included the correctness of applying a net profit rate of 6% without complete bills and vouchers and the sustainability of the Tribunal's order in distinguishing work contract types. The facts revealed the assessment of income for the assessment year 2008-09 based on gross receipts and net profit rate, leading to the appeal by the revenue. Issue 3: Assessment of income for a civil contractor The appellant, a civil contractor engaged in road construction, had his income assessed by the Assessing Officer at a certain net profit rate. The Commissioner of Income Tax (Appeals) and the Tribunal had differing decisions on the net profit rate to be applied, resulting in the appeal by the revenue against the Tribunal's order directing a lower net profit rate of 6%. Issue 4: Appeal against the order of the Commissioner of Income Tax (Appeals) and the Income Tax Appellate Tribunal The Tribunal's order was challenged by both the revenue and the assessee. The High Court, in a separate judgment, allowed the assessee's appeal, setting aside the Tribunal's order and remitting the matter back to the Tribunal for a fresh decision on merits. The revenue's appeal was allowed, and the Tribunal's order was set aside, with directions to adjudicate the issue on merits after providing a hearing to the parties in accordance with the law.
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