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TMI Blog2012 (2) TMI 64X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the provisions of section 145(3) are applicable as certain defects were there. The assessee itself has shown net profit rate at 10%. The A.O. applied net profit rate at 12.5% which has been reduced to 10.5% by the CIT (A). We see no unreasonableness in the order of the CIT (A) – Decided against the assessee. - C.O. No.55/JP/2011 (Arising out of ITA No.26/JP/2011 - - - Dated:- 3-1-2012 - SHRI R.K. GUPTA, SHRI N.L. KALRA, JJ. Appellant by : Shri D.K. Meena, DR Respondent by : Shri S.C. Gupta, ORDER PER BENCH: The appeal filed by the Revenue and two C.Os filed by the assessee are directed against the order of the CIT (A), Alwar dated 28.10.2010 relating to assessment year 2002-03. 2. In C.O. No.15, the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n by applying net profit rate at 10.5% against 10% declared by the assessee. Therefore, other additions made under section 40A(3) and u/s 37(1) were deleted. 6. Now the department is in appeal against deletion of additions made under section 40A(3) and u/s 37(1) and assessee is objecting application of net profit rate @ 10.5%. 7. The Ld. DR strongly supported the order of the A.O. It was further submitted that though the additions made u/s 40A(3) 37(1) were deleted by the ld. CIT(A) in earlier year also and the order of the CIT(A) has been confirmed, however, every year is an independent year and res-judicata does not apply in Income-tax proceedings. The assessee has violated the provisions of section 40A(3) and therefore, addition ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Act are applicable as certain defects were there. The assessee itself has shown net profit rate at 10%. The A.O. applied net profit rate at 12.5% which has been reduced to 10.5% by the ld. CIT (A). We see no unreasonableness in the order of the CIT (A). It was further stated that in earlier year also net profit rate of 9.5% were applied by the AO as against 7.25% shown by the assessee. The Tribunal has confirmed the net profit rate of 8.5%. The facts of the case are similar as admitted by the ld. Counsel himself. Therefore, in view of these facts and circumstances, we hold that the Ld. CIT (A) was justified in directing to apply net profit rate at 10.5%. Accordingly, the order of the ld. CIT (A) is confirmed on this issue. 11. In the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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