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2013 (10) TMI 216 - HC - Income TaxRejection of books of accounts - estimation of income - Computation of net profit - Held that:- Assessing Officer assessed the net profit at the rate of 13%, which the Commissioner of Income Tax (Appeals) reduced to 8%. Such rate of profit has been affirmed by the Tribunal. It would be a pure finding of fact that what should be net rate of profit from the work of a civil contract. In Parbhat Kumar's case (2008 (11) TMI 356 - PUNJAB & HARYANA HIGH COURT), it was the revenue appeal, which was dismissed holding that net profit rate in proceedings of best judgment assessment after rejecting the account books would be question of fact when the findings recorded can be proved to be arbitrary and perverse. In the aforesaid case, 12% was applied as net profit rate in the case of civil contractor. We do not find that applying 8% as net profit rate is so arbitrary or perverse, so as to warrant any interference in the facts of the present case - Decided against Revenue.
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