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2020 (1) TMI 402 - AT - Income TaxNet profit determination - CIT-A confirming the net profit rate of 8% - AO held that the assessee has failed to maintain complete and correct books of account with documentary evidence - HELD THAT:- We find that the assessee has submitted before the CIT(Appeal) by relying on the decisions in the case of Dhampur Sugar Mills Ltd [1972 (3) TMI 16 - ALLAHABAD HIGH COURT] and M/s IVF Holdings (P) Ltd. Mumbai [2011 (7) TMI 1242 - ITAT MUMBAI] that where the revised return has been filed as per the terms of the provisions of section 139(5), the original return shall be treated as withdrawn. Therefore the revised return is only to be considered during the assessment proceedings. However, the AO, on the basis of original return of income pointed out some discrepancies and rejected the books of account. We find from the submission made by the assessee before CIT(Appeal) that the tribunal of Amritsar Bench in the case of Mohan Singh Contractor [2012 (6) TMI 877 - ITAT AMRITSAR]. has considered 5% NP rate has reasonable in the case of contractor. Therefore, considering all, we direct the AO to apply 5% NP rate in the case of assessee on the gross receipt of ₹ 3,15,21,611/- including return of income of ₹ 6,87,464/-. The AO is directed to recompute the taxable income of the assessee by applying 5% NP rate. Accordingly, this appeal is partly allowed.
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