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TMI Blog2015 (7) TMI 1403X X X X Extracts X X X X X X X X Extracts X X X X ..... hore Pundir is a contractor engaged in supply of machines JCB, Construction of roads buildings. So he is giving multivaried services. Whereas the case law relied upon by the AO titled as PARBHAT KUMAR, SIRSA , Parbhat Kumar, Sirsa was civil contractor engaged in civil construction. So nature of work done is not same in both the cases. Therefore, to compare both cases levy high estimated rate of 12% is not just. End of justice would be served if profit rate @8% gross receipt is adopted. Accordingly we direct the AO to adopt profit rate @8% on Gross receipts and re-compute the income of the assessee accordingly. Appeal filed by the assessee stands allowed for statistical purposes. X X X X Extracts X X X X X X X X Extracts X X X X ..... 61 was issued on 14.9.2010 fixing the case for hearing on 28.9.2010. Thereafter, notices u/s. 142(1) of the Income tax Act, 1961 alongwith Questionnaire were issued on 3.10.2011 fixing the case for hearing on 14.10.2011. In response to the same, Asseee's Authorised Representative attended the assessment proceedings from time to time and filed written submissions. The case was discussed by the AO with the said Authorised Representative of the assessee and books of account were produced and test checked. 3.1 The assessee is a contractor engaged in the work of labour supply, mechanical and civil contracts. He is also supplied machinery on rent basis to the companies. During the year under consideration the assessee has shown gross receipts of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rieved with the aforesaid assessment order, assessee appealed before the Ld. CIT(A), who vide impugned order dated 7.3.2013 has dismissed the appeal of the assessee by upholding the order of the Assessing Officer. 5. Ld. Counsel of the assessee submitted that AO was not justified in levying high rate of 12%. Whereas on similar facts the judicial courts have allowed a lower rate upto maximum of 8% on gross receipts which is reasonable in the circumstances of the case. The rate applied should be based on valid basis such as past history of the case, nature of business, past years profits. He further submitted that the assessee Sh. Nand Kishore Pundir is a contractor engaged in supply of machines JCB, Construction of roads & buildings. So he ..... X X X X Extracts X X X X X X X X Extracts X X X X
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