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2016 (7) TMI 809 - AT - Income TaxRejection of books of accounts - A.O. estimated net profit of 12.5% on main contracts - Held that:- It is an admitted fact that estimation of net profit from civil contract receipts is consistently followed by the department on various rates depending upon the facts and circumstances of the each case. The ITAT, also upheld the estimation of net profit ranging from 8 to 12.5% on main contracts. It is an admitted fact that the profit ratio cannot be a constant factor for each and every contractor in all cases. It varies from place to place depending upon the type and nature of works contract executed by the contractor. In the present case on hand, the assessee contended that he had executed works contract in various places, wherein he has procured material locally depending upon the business expediency. The assessee contends that he had admitted a net profit of 7.5% which is reasonable when compared to the nature of works executed by him. The CIT(A) after considering the relevant details and also taken into account the ratio of the jurisdictional ITAT, in the case of M/s. Srinivasa Lakshmi Constructions (2011 (1) TMI 1437 - ITAT HYDERABAD) has scaled down the estimation of net profit to 9% on main contract works net of all deductions including deduction towards depreciation. We do not see any error or infirmity in the order of CIT(A). Hence, we inclined to upheld the order of the CIT(A) and dismiss the appeal filed by the revenue. - Decided in favour of assessee
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