9911796707
TMI Blog2015 (11) TMI 405X X X X Extracts X X X X X X X X Extracts X X X X ..... the Assessing Officer determined a net profit rate of 10 per cent. the Commissioner of Income-tax (Appeals) at 8 per cent. and the learned Tribunal at 5 per cent. The learned Tribunal was, therefore, required to record reasons by reference to relevant facts before determining the net profit rate of 5 per cent. Consequently, without expressing any opinion on the merits of the controversy and while affirming the rejection of account books, the matter is restored to the Income-tax Appellate Tribunal, Amritsar Bench. Amritsar, for determining net profit rate in terms of the ratio in Telelinks v. CIT (2014 (12) TMI 570 - PUNJAB & HARYANA HIGH COURT ). - Decided in favour of revenue for statistical purposes. X X X X Extracts X X X X X X X X Extracts X X X X ..... ity, the nature of the assessee's business, the value of the contract, prevailing economic condition, etc., as set out in I. T. A. No. 269 of 2014 (Telelinks v. CIT decided on November 29, 2014-since reported in [2015] 377 ITR 158 (P&H)), the impugned order is perverse and arbitrary and may be set aside. 3. Counsel for the assessee submits that as the past history of the assessee is referred to by the Assessing Officer and the Commissioner of Income-tax (Appeals), it may be presumed that the Income-tax Appellate Tribunal was conscious of the past history and, therefore, proceeded to assess the net profit rate of 5 per cent. It is also contended that in the previous year, the assessee was assessed at a net profit rate of 4.22 per cent. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rily be exercised on the basis of relevant factors which we shall enumerate but before doing so, would clarify that these factors are neither exhaustive nor a final word on relevant factors that may be consi dered while determining the net profit rate. A few significant factors are the past tax history of the assessee, if available, assessment orders that may have been passed and accepted by the department, the nature of the assessees' business, an appraisal of the value of the con tract, prevailing economic conditions vis-a-vis the assessee's busi ness, the price of raw material, labour, etc., the rise in price index as notified by the Central Government from time to time if applicable and if the Assessing Officer proceeds to rely ..... X X X X Extracts X X X X X X X X Extracts X X X X
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