1976 (2) TMI 96

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..... t receipts in this year were Rs. 8,39,641. The ITO, without giving any further reason, adopted a rate on 10 per cent on these receipts. 3. The AAC considered the facts of the case in detail and found that the assessee undertook civil contracts under the State Government authorities and materials were supplied by them in large measure. The AAC further found that after certain adjustment, the profi .....

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..... Government continued to be the owner of the materials supplied. Considering this fact and also fact that the assessee had maintained regular books of account and in the absence of any material defects pointed out by the ITO, the AAC upheld the profits shown by the assessee and deleted the addition made by the ITO. 5. It is submitted by the Departmental Representative before us that the AAC shoul .....

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..... o addition was called for. He pointed out that the ITO had not given any reason for making such a huge addition. He also submitted that the AAC had not held that the profits should be estimated on the basis of net receipts. 7. Having considered the arguments, we are of the view that the AAC was justified in deleting the addition made by the ITO. The ITO has not mentioned any defects whatsoever in .....

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