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2018 (2) TMI 1824 - AT - Income TaxN.P. rate determination - Held that:- The assessee is also engaged in civil construction business, however the AO has not considered that the assessee is operating in remote areas of Srinagar where the profit margins are very low due to hard weather conditions and intermittent stoppage of work due to one or other reasons, leading to the higher cost of input and labour. AO was under obligation to apply the comparative cases of the similar other assessee's in similar business on the similar location, therefore, CIT(A) has considered the case of M/s Shivam Constructions Engineers, Srinagar (2012 (5) TMI 762 - ITAT AMRITSAR) in which, the net profit rate was directed to be applied @7% subjected to no further allowances. Therefore, in our considered opinion, CIT(A) is right in granting relief to the assessee. Addition on account of suppression of receipts by the assessee - Held that:- CIT(A) rightly held that no separate addition is called for as the net profit rate @ 7% has already been taken into consideration undisclosed receipt for the purpose of computing the total income, hence, for ground Nos.2 & 3 also stand dismissed. The order passed by the Ld. CIT(A) is based on the logical reasoning and does not suffer from any illegality, perversity and impropriety, therefore, does not require to be any interference. - decided against revenue
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