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TMI Blog2014 (12) TMI 565X X X X Extracts X X X X X X X X Extracts X X X X ..... Bhalla, J (Oral) The revenue is before us challenging order dated 15.4.2013 passed by the Income Tax Appellate Tribunal, Chandigarh Bench 'B' . Counsel for the revenue submits that as Section 44 AD (2) of the Income Tax Act, 1961 provides that where income is calculated at net profit rate no further deduction shall be allowed to an assessee, the Tribunal is not justified in allowing dedu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tedly exceed Rs. 10 crores, Section 44 AD of the Act does not apply to the present case. The net profit rate of 10% was rightly reduced to 6% and as there was no reason to apply such a high gross profit percentage. We have heard counsel for the parties and perused the impugned order. The first question that calls for an answer, is whether the Income Tax Appellate Tribunal has erred in granting d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tries. The Tax Reforms Committee has also recommended gradual introduction of the Estimated Income Method in certain areas to facilitate better tax compliance. Accordingly, a new Section 44 AD has been inserted to the Income-tax with a view to providing for a method of estimating income from the business of civil construction or supply or labour for civil construction work. The new section is appl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rate after considering the past net profit rate applied to the assessee and that there is no perceptible change, in the assessment year under consideration. The findings of fact being devoid of an arbitrary exercise of discretion or any perversity in the reasoning does not give rise to a substantial question of law. Consequently the questions of laws are answered against the revenue and the appea ..... X X X X Extracts X X X X X X X X Extracts X X X X
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