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2012 (2) TMI 562 - AT - Income TaxN.P.determination - Held that:- The application of net profit rate of 12% in all the cases of civil contractors is thus unwarranted as the Hon'ble Punjab & Haryana High Court itself in different set of facts had applied a net profit rate of 10%. In view thereof, we hold that in the present set of facts and circumstances where the assessee was engaged in petty civil construction work, where even cement and steel was supplied by the University of Kurukshetra, there is no merit in applying net profit rate of 12% to determine the income of the assessee for the year under appeal. The assessee had declared net profit rate of 4.5% for the year under appeal. We direct the Assessing Officer to apply the net profit rate of 6% to work out the income of the assessee. Accordingly, upholding the rejection of books of account, we direct the Assessing Officer to recompute the income in the hands of the assessee.
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