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TMI Blog2011 (5) TMI 1024X X X X Extracts X X X X X X X X Extracts X X X X ..... Shri K.K. Gupta, Accountant Member : This appeal by the assessee agitates the order of the learned Commissioner of Income-tax (Appeals) on the solitary issue of estimating the Net Profit at 10% of the contract receipts on the facts and circumstances of the assessee s case being a contractor. 2. The brief facts as were before the authorities below are that the assessee is a firm deriv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ld a view that the income from the contract work resulting in gross receipt of ₹ 91,82,399 should be subjected to tax at net profit of 10% thereof under the provisions of Section 144 and also that the machinery hire charges received amounting to ₹ 11,60,000 should be taxed @5% thereon. He also noted that the Assessing Officer was justified to assess the assessee as an AOP by denying th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rused in his order. In other words, he tried to tax a portion of salary to the partners by enhancing the profits as returned by the assessee by incorporating the disallowance of remuneration to partners which otherwise was acceptable to the assessee at 8% under the provisions of Section 44AD. The learned Counsel for the assessee agreed to the proposition for taxation @8% on the contract receipts a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ded u/s.44AD. We direct the Assessing Officer to adopt the Net profit @8% on the gross receipts from contract amounting to ₹ 91,82,399 to be taxed by partly allowing the ground of appeal. This being the solitary ground therefore stands partly allowed. 4. In the result, the appeal of the assessee is partly allowed. PRONOUNCED IN OPEN COURT ON Dt. 27th May, 2011 - - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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