2012 (3) TMI 684 - AT - Income Tax

Summary

Issues involved: Appeal against order of Ld. Commissioner of Income Tax (Appeals) restricting addition made by Assessing Officer u/s. 145(3) on gross receipts.

Summary:
The appeal by the Revenue challenged the order of the Ld. Commissioner of Income Tax (Appeals) regarding the assessment year 2007-08. The Assessing Officer had rejected the books of accounts and applied net profit @10% on the gross receipts of the company. The Ld. Commissioner of Income Tax (Appeals) partially allowed the appeal, restricting the addition to 0.5% of the total gross receipts. The Revenue appealed against this order.

Upon hearing the contentions, the tribunal noted a similar case involving the assessee's group company where the disallowance was restricted to 0.5% of the contract receipt as disallowable expenditure. Following the principle of stare decisis, the tribunal remitted the matter back to the Assessing Officer for further consideration in line with the directions given in the previous order.

Therefore, the appeal filed by the Revenue was allowed for statistical purposes, and the matter was remitted back to the Assessing Officer for reevaluation in accordance with the tribunal's directions, ensuring the assessee's right to be heard.