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TMI Blog2015 (3) TMI 840X X X X Extracts X X X X X X X X Extracts X X X X ..... the NP rate ought to be 2.5%. In the circumstances, it cannot be said that the reasoning is unsustainable or so erroneous as to call for interference under Section 260A of the Income Tax Act, 1961. No substantial question of law, therefore, arises - Decided against revenue. - ITA No. 178/2015 - - - Dated:- 9-3-2015 - S. Ravindra Bhat And R. K. Gauba,JJ. For the Appellants : Ms Suruchi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... total value of the contract awarded by Ircon and Indian Railways. The CIT (A), however, accepted the assessee's contentions and granted relief. The Revenue's appeal before the ITAT succeeded in part in that, the rejection of the books of accounts in the first instance resorted to by the AO was restored. However, instead of estimation of income at 8% on the basis of Section 44AD, the ITA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessing Officer, after rejecting books of account, does not get unfettered powers to estimate income as per his whims and fancies. The estimation of income should be made on a rational and legally sustainable manner. Unless the facts and circumstances are shown to be different, it is advisable to go by the profit rate of the preceding year for application in the instant year. The facts, for the c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t is directed to apply the net profit rate of 2.50% without allowing any further deductions. This Court has considered the submissions. The ITAT apparently took note of the profit rate for other previous years and had, on an average exercise, concluded that the NP rate ought to be 2.5%. In the circumstances, it cannot be said that the reasoning is unsustainable or so erroneous as to call for i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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