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TMI Blog2017 (12) TMI 201X X X X Extracts X X X X X X X X Extracts X X X X ..... has assailed the judgment and order of the Tribunal whereby the Tribunal has partly allowed the appeal of the assessee modifying the order of CIT(A) as well as AO. 2. This Court while admitting the matter framed the following question of law:- Whether on the facts and in the circumstances of the case the ITAT is justified in law in restricting net profit rate at 5.5% of contract receipts, ignoring the rate of 8% prescribed u/s 44AD and also that higher net profit of 8.26% was declared in the immediately preceding assessment year by the assessee? 3. Counsel for the appellant has taken us to the order of AO and contended that the AO while considering the matter has rightly rejected the books of accounts and applied gross profit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urrent year Last year Turnover 153853690/- 20556421/- Depreciation 2356767/- 911191/- N.P. before depreciation interest and remuneration 9967131- (6.48%) 2610705-(12.70%) N.P. after depreciation but before remuneration and interest 7610364/- (4.95%) 1699514/- (8.26%) From the above table it is clear that the assessee itself has declared 12.70% as net profit before interest remuneration and depreciation and if past history of the assessee is followed as per asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l as before us but there is no basis on which jurisdiction has been challenged by the ld AR, therefore, there is no merit on raising ground No. 2 by the assessee. Accordingly, ground No. 2 of the assessee s appeal is also dismissed. When books of account had been rejected U/s 145(3) of the Act by the Assessing Officer, the only option is left before him to estimate fair income on the given circumstances and nature of the business by comparing the case of by collecting the evidences. The net profit during the year under consideration is 4.95% before interest and remuneration on total contract receipt of ₹ 15,38,53,690/-, which was 3.6% in preceding year on total contract receipt of ₹ 2.05 crores. The lower authority estimated the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o not been applied by the lower authority even confirming the addition by the ld CIT(A). Keeping in view of the past history of the case, we apply N.P. rate @ 5.5% subject to interest and remuneration to the partner. The Assessing Officer is directed to calculate the income as per observation made by us. 6. After the matter was argued, now Mr. S.L. Jain counsel for respondent has appeared. The matter was admitted on 9th November, 2016 and when the matter was adjourned on 14th November, 2017 at the request of assessee, we made it clear that the Court will proceed with the matter as this is one of the oldest matter pending before the Jaipur bench. However, he has sought to rely upon the decision of this Court in case of Commissioner of I ..... X X X X Extracts X X X X X X X X Extracts X X X X
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