9911796707
TMI Blog2017 (12) TMI 201X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 @ 11%. 4. Counsel for the appellant has also taken us to para 5.3 of CIT(A) which reads as under:- "5.3. I have carefully considered the facts of the case and also submission of the appellant. The AO has given detailed reason for rejection of the books of accounts in his order at page no. 2 to 4. Further the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has declared 12.70% as net profit before interest remuneration and depreciation and if past history of the assessee is followed as per assessee's contention then the reasonable NP rate should be 12.70% against which the AO applied 11% subject to interest, remuneration and depreciation which is the given circumstances seems quite reasonable. Therefore, the finding of the AO needs no interference and thus I uphold the net profit of 11% as applied by AO. Regarding ground 5, the appellants contention is that the AO did not allowed interest depreciation and remuneration to partners and interest to 3rd Parties. From the order it is seen that the AO allowed interest remuneration and depreciation to partners. However, interest to 3rd parties is no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5,38,53,690/-, which was 3.6% in preceding year on total contract receipt of Rs. 2.05 crores. The lower authority estimated the net profit @ 11%, which is higher side as in A.Y. 2011-12 and 2010-11 the Assessing Officer estimated net profit rate @ 5%. IN A.Y. 2009-10 also various ad hoc disallowances were made by the Assessing Officer on net profit rate @ 5.38% on total contract receipt of Rs. 12.32 crores. The Coordinate Bench has confirmed the lump sum addition of Rs. 5 lacs. Even from A.Y. 2004-05 to 2008-09 the assessee either disclosed net profit rate more or less 5% or accepted by the ITAT @ 5% subject to interest and remuneration to the partners. The assessee in A.Y. 2009-10 was before the Hon'ble Rajasthan High Court wherein the Hon ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
