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TMI Blog2021 (11) TMI 1125X X X X Extracts X X X X X X X X Extracts X X X X ..... ing year and, in such circumstances, there is justification for complete decline of contract expenditure claimed by the asssessee, which goes to constitute the gross profit rate. ITAT has further taken into consideration the profit and loss accounts of the assessee for comparison of expenses and found that the same are in order. After finding the gross profit shown by the assessee as reasonable, the ITAT has found that the assessee s claim of interest expenditure and depreciation is required to be allowed. In our opinion, the ITAT after thoroughly examining the material available on record has assessed the income of the assessee and according to us, the same is essentially a question of fact and appreciation of evidence. After going t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d. ITAT also agreed for some technical mistakes in the books of accounts and the decision of AO rejecting books of account was not cancelled ? 2. Whether, on the facts and in the circumstances of the case, the ld. ITAT has erred in determining the income of the assessee at Rs.50 Lakh on adhoc basis even after accepting that it is undisputed fact that there are technical mistakes in the maintenance of Books of Account by the assessee and the observation of the AO with regard to the expenditure has also been upheld ? 3. Whether, on the facts and in the circumstances of the case, the ld. ITAT has erred in not holding that the AO has reasonably estimated the N.P rate by taking the average N.P rate of past 3 years despite agreeing th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it @ 10.32% before depreciation and further directed that the depreciation shall be allowed on fixed assets (except for the fixed assets added during the year under consideration). After giving effect to the order of the CIT(A), the assessee s income was recomputed at Rs.15,73,12,882/-. Being aggrieved with the order dated 22.7.2019 passed by the CIT(A), the assessee as well as the Revenue have filed separate appeals before the ITAT. In appeal being ITA No.270/Jodh/2019, the assessee has raised the only grievance relates to the addition made by the Assessing Officer estimating the net profit at 7.6% of total receipts. The ITAT vide order dated 13.8.2020, while disposing of the appeal preferred by the assessee, has directed the Assessi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ve in the instant appeals as the findings arrived at by the ITAT are based on facts, which are not liable to be interfered with. Heard learned counsel for the parties and perused the material available on record. The ITAT has observed that though there is no dispute regarding the fact that there are some technical mistakes in maintaining the books of accounts, however, the Assessing Officer should not loose sight of the gross profit rate shown by the assessee during the year under consideration as compared to the gross profit rate shown in the immediate proceeding year while coming to the conclusion of rejecting the books of accounts and estimating the net profit rate. The ITAT has found that during the year under consideration, the g ..... X X X X Extracts X X X X X X X X Extracts X X X X
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