9911796707
TMI Blog2016 (6) TMI 1498X X X X Extracts X X X X X X X X Extracts X X X X ..... by the appellant society u/s.80P(2)(vi) of the Act. 2) On the facts and in law the CIT (A) has erred in upholding the rejection of book results and in confirming the estimation of the A.O. of net profit at Rs. 32,53,148/- @ 15% of contract receipts. 3) On the facts and in law the CIT (A) has erred in not appreciating the fact that the appellant is a labour co-operative society, engaged in the activity of providing employment to the labourers and has maintained the books of accounts which have been duly audited; in view of the above facts the appellant society is eligible for deduction u/s.80P(2)(a)(vi) of the Act. 4) On the facts and in law the CIT (A) has erred in not appreciating the fact that all the labourers are members ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the hands of the assessee @ 5%, where the assessee company was engaged in the construction of roads, etc.. Further, reliance was placed on the Special Bench decision of the Delhi Bench in DCIT vs. Allied Construction, (2007) 105 ITD 1 (SB) (Delhi) wherein also the estimation of income was made in the hands of the assessee and it was held that the same should be on reasonable basis taking into account the results shown by the assessee in the past. 6. The Ld. Departmental Representative for the Revenue, on the other hand, strongly placed reliance on the orders of the authorities below. 7. Briefly, in the facts of the cast, the assessee had furnished the return of income declaring Nil income after claiming deduction under section 80P(2). How ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f Rs. 168.08 lakhs net profit rate of 0.67% had been declared. The said assessment for assessment year 2013-14 was completed under section 143(3) of the Act and net profit declared by the assessee was accepted in toto. The assessee has also furnished on record detailed chart in respect of other societies which were labor co-operative society, which were also engaged in the similar business wherein the net profit rates have been declared on a lower margin from year to year. In none of the cases, the net profit margin has been as high as 15%. The assessee admittedly is carrying on the civil contract work for Government agency by way of repairs of roads and buildings and the business results shown by the assessee are not comparable to the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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