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TMI Blog2012 (10) TMI 331X X X X Extracts X X X X X X X X Extracts X X X X ..... were essentially the same. The comparable profit rates disclosed by the other operators and adopted by the revenue in such cases was 4% to 8% and thus the disclosed profit rate of 4.72% was found to be a reasonable estimate of the assessee's profit for the year in question, subject to deductions on account of depreciation allowance as well as interest and salary to partners.On the question of ded ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act, 1961, the revenue has raised following substantial questions of law:- "1. Whether the Hon'ble ITAT was legally correct on the facts and in the circumstances of the case in applying profit rate of 4.72% as against profit rate of 8% applied by the AO which action was taken after due deliberations and establishing that the books of account of the assessee were not reliable and/therefore, reje ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... profit was calculated at the rate of 8%. The AO allowed misc. deductions, salary to partners, interest to partners, depreciation and after adding interest income of Rs.66,119/-, and assessed the total income at Rs.18,09,690/- on the original return of Rs.2,16,200/- filed on 28.11.2003. 4. The Tribunal has not found any good reason to increase the profit rate on the grounds that the assessee had ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ror on accepting the declared profit rate of 4.72%. In fact the AO did not give any reasons, which have been given by the ITAT in restoring the profit rate of 4.72%. On the question of deductions of material and interest the matter has been remanded and therefore, there is no final opinion of ITAT. 7. There is no doubt that the AO could resort to best judgment assessment, but that without adding ..... X X X X Extracts X X X X X X X X Extracts X X X X
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