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TMI Blog2012 (3) TMI 139X X X X Extracts X X X X X X X X Extracts X X X X ..... e AO is directed to apply net profit rate at 1.50% . Thus, the assessee gets partial relief. - ITA No. 373/CHD/2011 ITA No. 362/CHD/2011 - - - Dated:- 4-1-2012 - SHRI H.L.KARWA, SHRI MEHAR SINGH, JJ. Assessee by : S/Shri Ravi Shankar B.M.Monga Department by: Shri N.K.Saini ORDER PER MEHAR SINGH, AM The present appeals fi led by the assessee and Revenue respectively are directed against the order dated 28.01.2011 passed by the ld. CIT(A) u/s 250(6) of the Income-tax Act,1961 ( in short 'the Act' ). 2. In assessee's appeal, the assessee has raised the fol lowing Grounds of Appeal: 1. That the order of ld. CIT(A) is bad in law and against the facts of the case. 2. That the ld. CIT(A) has erred in uph ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ircumstances of the case, the ld. CIT(A) is right in al lowing rel ief to the assessee by reducing the net prof it rate to 1.75% as against 2% appl ied by the AO, admitting the assessee s plea that interest burden on secured loans has been increased; whereas interest burden has been actual ly increased merely by 91% as against turnover which increased more than 131% as compared to previous year ? 2. Whether on the facts and circumstances of the case, the ld. CIT(A) is right in al lowing rel ief to the assessee by reducing the net prof it rate to 1.75% as against 2% appl ied by the AO, when the assessee is benef ited in view of large scale business economics due to substantial increase in sales as several expenses of f ixed semi f ixed n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing GP rate in the earl ier assessment years have been accepted by the appel lant. 6. We have careful ly perused the facts of the case, rival submissions and relevant record. The assessee appel lant chal lenged the NP rate arguing that the net profit from transportation business ranges between 2 to 3%. However, AO had appl ied net prof it at 4.51% which is on higher side. It was further contended by the assessee that trucks/tankers owned by the appel lant are designed and fabricated in the manner that these can be uti l ized for the purpose of transporting molasses. These trucks have been fabricated for the specified purpose and hence, the same cannot be uti l ized for any other purpose. The ld. AR contended that the NP of 4.5% is on th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of molasses, rice etc. and is also running a brick ki ln. In addition, the assessee had shown income under the head income from house property and other sources . The AO rejected the books of account of the assessee by invoking the provisions of Section 145(3) of the Act. Ld. CIT(A) upheld the rejection of books of account by the AO in view of the findings recorded in para 3.2 of the appel late order. The AO computed the assessee s income from M/s Aastha Trading Co., which deals with the trading of molasses etc. by applying NP rate of 2% as per the last year which was accepted by the assessee. The assessee chal lenged the appl ication of NP of 2% stating that the turnover of the appel lant had doubled as compared to the previous year and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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