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TMI Blog2011 (2) TMI 234X X X X Extracts X X X X X X X X Extracts X X X X ..... rial at site valuing Rs.16,09,189/- shown in profit and loss account is taken into consideration, the net profit rate would be below 3.4%. He, on the strength of above submissions, stressed that the Tribunal while accepting the plea of the assessee had not referred or discussed any material in this regard - He submitted that the order of the Tribunal is patently unsustainable - Appeal is allowed by way of remand - ITA No. 259 of 2003 - - - Dated:- 3-2-2011 - MR. JUSTICE ADARSH KUMAR GOEL, MR. JUSTICE AJAY KUMAR MITTAL, JJ. Mr. Yogesh Putney, Advocate for the appellant. AJAY KUMAR MITTAL, J. 1. This appeal has been preferred by the revenue under Section 260A of the Income Tax Act, 1961 (in short the Act ) against the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion in this appeal is as to what is the appropriate net profit rate in the facts and circumstances to be adopted in the case of the assessee. 5. The Assessing Officer had adopted net profit rate of 10% to be appropriate with the following observations:- Shri Atul Jain argued that if a net rate of 10% is applied to the net contract receipts the addition to the returned income will be much higher than the amount of fresh cash credits introduced during the year under consideration. These credits should be considered to be covered in that addition. Therefore, no separate cognizance needs to be taken. The introduction of cash credits is part of income earned by the assessee as sought to be determined by application of a flat rate of 10% ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has observed that the net profit rate disclosed by the assessee is 7% which is not correct. It was also urged that if the material at site valuing Rs.16,09,189/- shown in profit and loss account is taken into consideration, the net profit rate would be below 3.4%. He, on the strength of above submissions, stressed that the Tribunal while accepting the plea of the assessee had not referred or discussed any material in this regard. He submitted that the order of the Tribunal is patently unsustainable. 9. The assessee has been served by way of affixation as per the report of Shri Suresh Bhardwaj, Inspector. No one has chosen to appear to contest the appeal. 10. We have given our thoughtful consideration to the submission of learned cou ..... X X X X Extracts X X X X X X X X Extracts X X X X
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