TMI Blog2010 (8) TMI 649X X X X Extracts X X X X X X X X Extracts X X X X ..... he judgment and order dated 15.12.2009 passed by the Income Tax Appellate Tribunal, Jodhpur Bench, Jodhpur ['the Tribunal'] in ITA No.256/JU/2009. Put in brief, the relevant background aspects of the matter are that the return filed by the respondent assessee, a civil sub contractor, was taken up for scrutiny assessment. During the assessment proceedings, after hearing the assessee and considering the record made available, the Assessing Officer ['the AO'] rejected the books of account and, invoking Section 145(3) of the Act, proceeded to make estimate of the net profit taxable in the hands of the assessee while applying the net profit rate of 8.17% based on the assessment completed in the case of the assessee for the immediate preceding ye ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... missions of Ld. D.R., it is found that the Ld. CIT (A) has considered thread bare the issues and analyzing them in the light of previous history of the assessee as well as the directions given by CBDT and the decisions rendered in the cases of CIT Vs. British Paints India Ltd reported at 188 ITR 44 and S.N. Namisiyam Chettiar, 38 ITR 579 thereby came to the conclusion that the assessing officer is well justified in invoking the provisions of Section 145(3) of IT Act. The Ld. CIT (A) further found that in view of entire facts and circumstances of the case, addition made by the assessing officer at Rs. 39,82,680 cannot be sustained and accordingly deleted the same. He also found that the reduction of sub let premium at 3.5% on gross contract ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd having perused the orders impugned, in our opinion, this appeal cannot be considered involving any substantial question of law. The matter in issue essentially relates to the process of best judgment assessment. The learned CIT (A) has found a fundamental error in the approach of the AO when the AO proceeded to reduce the sublet premium out of the gross contract receipts and found it justified that the same was claimed in the Profit Loss account. The learned CIT (A) further upheld the computation and calculation of net book profit @ 5.55% on the basis of the record and observed that the same was in accordance with the guidelines of CBDT. Leaving aside the question of guidelines, the finding that the basis of rate of profit exis ..... X X X X Extracts X X X X X X X X Extracts X X X X
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