TMI Blog1998 (8) TMI 130X X X X Extracts X X X X X X X X Extracts X X X X ..... of civil contractors. No books of account have been maintained. On contract receipts the assessee disclosed net profit at 10 per cent and thereafter claimed depreciation and declared income accordingly in the returns for the asst. yrs. 1988-89, 1989-90 and 1990-91. The AO applied net profit at 12.5 per cent and allowed depreciation as per law. The application of net profit rate and disallowance o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wherein even lesser net profit rate had been accepted. It was, thus, argued before the CIT(A) that the net profit rate at 10 per cent declared by the assessee was reasonable. The submissions of the assessee found favour with the CIT(A), who accepted the net profit rate at 10 per cent as reasonable and deleted the addition which was consequent to application of net profit rate at 12.5 per cent. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The assessee, on the other hand, brought on record the cases of civil contractors where the same AO had applied lesser net profit rate than 12.5 per cent. The finding of fact, recorded by the CIT(A) that the cost of material and labour have gone up in all these years could not be assailed by the Revenue. Nothing has been shown to us by the Revenue as to why net profit rate of 8 per cent in the cas ..... X X X X Extracts X X X X X X X X Extracts X X X X
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