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2015 (9) TMI 1561 - AT - Income TaxN.P. rate determination - AO applying the net profit rate @ 12% instead of 7% on the gross receipts as declared by the appellant - Held that:- CIT(A) has stated that in the nature of assessee’s business, the number of persons employed could not be large because otherwise the assessee would have been required to file statements to various State agencies administering various labour welfare laws. No muster roll was maintained. The assessee did not furnish information regarding number of persons employed and the name of the parties from whom consumables were purchased. In our considered view, the authorities below were fully justified in applying the net profit rate of 12% on gross receipts which is in consonance with the judgement in the case of CIT v M/s Prabhat Kumar (2008 (11) TMI 356 - PUNJAB & HARYANA HIGH COURT) relied on by the Assessing officer. In case of estimation, if the CIT(A) has passed an order by giving cogent reasons, the Tribunal in an appeal either by Revenue or assessee is required to apply its mind and consider the reasons given by CIT(A). CIT(A) has passed a well reasoned order and, therefore, we do not see any ground to interfere with the order of CIT(A). Considering the nature of assessee’s business, net profit rate of 12% on gross receipts is reasonable. Accordingly, we uphold the order of CIT(A) and dismiss the appeal of the assessee.
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