2012 (10) TMI 331

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..... ra, learned counsel appearing for the revenue.   2. In this Income Tax Appeal under Section 260-A of the Income Tax 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 .....

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..... y the AO. 3. So far as the first question is concerned, after rejecting the account books without adding any income, 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 28.11.2 .....

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..... of materials supplied by the principals of the assessee. 6. We do not find that the Tribunal has committed any error 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 opi .....

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