9911796707
TMI Blog2000 (4) TMI 164X X X X Extracts X X X X X X X X Extracts X X X X ..... -sheet. The other point raised in cross-objection relates to confirmation of the application of G.P. rate of 15 per cent by the AO on contract payments receipts of the assessee. 3. The learned senior Departmental Representative submitted that the balance sheet furnished by the assessee, inter alia, disclosed liability of Rs. 72,000 under the head "labour payment account" in the first period covering the period from 1st Jan., 1984, to 15th July, 1984. The second period covers the period from 15th July, 1984, to 31st Dec, 1984. Similar liability of Rs. 5,000 was shown in the balance sheet pertaining to the second period under the head "labour payment account". The AO made the addition in respect of the aforesaid liability on the ground that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... AO was made under s. 144. However, after a careful consideration of the entire relevant facts and keeping in view the fact that the matter relates to a very old period, namely asst. yr. 1985-86 it is not considered proper on the facts of the present case to once again set aside this matter and restore it back to the AO. Such a course of action is being taken particularly in view of the fact that outstanding liability in the first accounting period was Rs. 72,000 but it reduced to only Rs. 5,000 as at the end of the second period of the relevant accounting year. Thus at the end of the accounting year consisting of two separate periods there was an outstanding liability of only Rs. 5,000. Moreover, the CIT(A) in the order passed by him has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 77,000. Since the Revenue's appeal has been dismissed, the grounds so raised by the assessee in their cross-objection in relation to the aforesaid point have become infructuous. 5. As regards the ground relating to application of profit rate of 15 per cent on contract payment is concerned, the learned CIT(A) has referred to an earlier order dt. 13th April, 1989, passed by the CIT(A) wherein he has given a specific finding as under: "Undoubtedly, I agree that the G.P. rate applied by the ITO is correct. However, he has not substantiated it by the facts which are available on the records. In these circumstances, I think it will be better that the case is set aside .........." The CIT(A) in the impugned order observed that since his lea ..... X X X X Extracts X X X X X X X X Extracts X X X X
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