TMI Blog2021 (4) TMI 842X X X X Extracts X X X X X X X X Extracts X X X X ..... ns and all expenses relevant thereto. We thus find no merit in the former grievance. Estimation of assessee s profits from sale of plots @5% - It is not in dispute that it had not placed on record all of the corresponding details of plots sold in both rounds of the instant lis. AR pressed very hard in support of the CIT(A) s conclusion that 5% profit rate on sale of plots is indeed just and proper. We find no reason to accept learned counsel s arguments in entirety. The fact remains that contrary to the assessee s contractual receipts, is this segment of sale of vacant plots has of course not undergone the other inputs of labour and construction expenditure heads. These plots have been sold on as and where basis in other words. It c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ussion on this issue as under: 4.3 Ground No.3 is estimation of net profit @15% on gross receipts instead of 8%. I have gone through the submissions filed by the appellant, assessment order and decisions of ITAT Visakhapatnam in the case of ACIT, Circle-2(1) Vs. Agrigold Constructions Pvt Ltd. The present case, appellant has Shown gross receipts of ₹ 18,09,62,569/-. The net profit after depreciation is shown @ 1.33% for the year under consideration. The A.O has estimated the same @ 15% on gross receipts. The Hon'ble jurisdictional ITAT, Hyderabad in the following cases held that the Profit rate of 8% would be fair and reasonable considering the nature of business carried on by the assessee. We therefore direct the A.O t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me, we do not see any reason to interfere with the Order of the Ld.CIT(A) and we hold that the Ld.CIT(A) has rightly applied the estimation of Income at 8% on Contract Receipts and 5% on Sale of Plots . 3. We have given our thoughtful consideration to rival proceedings against and in support of the CIT(A) s order estimating the assessee s profits in the twin receipts. Suffice to say, we are of the opinion that the CIT(A) s estimation for assessee s contractual receipts hardly calls for any interference since he has been guided by various judicial precedents (supra) as well as the nature of the taxpayer s contractual works performed. There can be hardly any dispute that a contractual assignment does not carry business risk at higher rate ..... X X X X Extracts X X X X X X X X Extracts X X X X
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