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2020 (9) TMI 907 - ITAT JAIPURNP estimation - Ad hoc disallowance of contract expenses - assessee had shown net profit of 10.41% on the gross contract receipts - case was selected for scrutiny/s 143(3) of the Act on the basis of CASS - HELD THAT:- It is evident from the record that the assessee has declared NP rate of 10.41% of gross receipt subject to further deduction of depreciation and interest which is much more than 8% therefore, no further trading addition should be made as held in so many cases by this Tribunal, as cited by the ld. AR of the assessee. In assessee’s own case, the Tribunal [2018 (1) TMI 1608 - ITAT JAIPUR]for the A.Y. 2013-14 had deleted all the additions wherein the NP declared by the assessee was at 8.09% of gross receipts. Thus, looking to the past accepted NP rate of the assessee, the net profit for the year under consideration at 10.41% is very reasonable, no further disallowance is warranted. Accordingly, we direct the A.O. to delete the disallowance so upheld by the ld. CIT(A). - Decided in favour of assessee.
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