9911796707
TMI Blog1976 (9) TMI 68X X X X Extracts X X X X X X X X Extracts X X X X ..... ear amounted to Rs. 40,369. The assessee also has income from interest mainly from concerns be longing to the partners of the assessee firm. The interest charged is @ 6%. During the course of business, some money was borrowed also from outsiders. According to the Appellate Assistant Commissioner, such sum is Rs. 60,000, for which it paid the interest @ 12%. 2. It is common ground that, so far as the contract business is concerned, the income from it has to be estimated, because the appellant has not maintained details of the work in progress. According to the assessee, the net profit rate, which should be applied in its case ought to be 13% whereas in the opinion of the Income tax Officer the proper rate would be 15%. On appeal, the Appel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... frankly conceded that the figure of income as reflected in its books of account, could not be accepted as correct because of the inadequacy of the accounts, particularly the non-availability of the figures of opening and closing balance of the work in progress. On behalf of the Department, the order of the learned Appellate Assistant Commissioner was stoutly supported. 5. We have carefully examined the rival submissions. In our opinion, the gross profit rate of 14% sustained by the learned Appellate Assistant Commissioner, is reasonable on the facts and in the circumstances of this case. The assessee firm has its own transportation arrangement, manufactures its own bricks and has considerable finance of its own and, therefore, is in a pos ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... siness ought to have been applied to the receipts from the sale of bricks also. The income from this source will, therefore, be recomputed by the adding the sale proceeds of bricks to the contract receipts and by applying the net profit rate of 14% to the entry of it. The Income-tax Officer will accordingly recompute the income from the contract business. 7. So far as the controversy regarding the proper net profit rate as to the hire receipts from truck is concerned, the rate of 50% applied by the learned Appellate Assistant Commissioner appears to us to be slightly on the higher side. It would be fair and just if the rate of 40% is instead applied to the aforesaid receipts. We are conscious of the argument of the learned Departmental Re ..... X X X X Extracts X X X X X X X X Extracts X X X X
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