TMI Blog2012 (9) TMI 150X X X X Extracts X X X X X X X X Extracts X X X X ..... record warranting adoption of higher percentage of net profit then the rate earlier estimated by ITAT could not be adopted - Decision matter remanded back to CIT(A). Addition on account of net interest expenditure - AO made addition on basis of TDS certificate - Corresponding interest income not shown in P&L a/c - Held that:- Paper books were available to AO & the details shows that assessee claims interest expenditure net of income therefore, no separate addition could be made on account of interest income. Decision in favor of assessee. Addition on account of Sub-contract work on estimated basis - Assessee claims that expense of sub-contract work should be reduce from gross receipt on the basis of decided case - Fact of case were no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eting the addition made by the A.O. of Rs.14,26,304/-on account of margin in sub-contract work to the tune of 6% which was half of net profit. 5. On the facts and circumstances of the case and in law the Ld. CIT (A) has erred in allowing ground of appeal No. 8 without passing speaking order relating to the issue of circular issued by CBDT w. r. t depreciation by holding that the issue had already been adjudicated. 6. On the facts and circumstances of the and in law the Ld. CIT (A) has erred in allowing ground of appeal No. 9 and 10 relating to rejection of books of accounts without passing a speaking order by holding that the issue had already been adjudicated. " 2. Ground NO. 1 is of general nature and does not require separate adjud ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re ignored, then the net profit ratio would work out to 23.6%. Therefore, admission of net profit at 12% was reasonable. 5. On the other hand, ld. counsel for the assessee submitted that assessee contractor was executing projects in various parts of the country and accounts were being consolidated in Chandigarh office. During survey, wages details were extracted only from one computer, whereas wages were recorded on various computers. He further submitted that survey was conducted on 12.03.2009. Therefore, no cognizance can be taken for the same in the assessment year 2008-09. In any case, once the Tribunal has estimated the net profit at 7%, which has been confirmed by Hon'ble Punjab Haryana High Court in I TA No. 260 261 for assessm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rence in the wages recorded in the computer print-out and the amount given in the Profit Loss Account. We further found that Tribunal has recorded following observation in ITA No. 279/Chd/2011 i .e. assessee's own case in assessment year 2007-08 : "It is, however clarified that this order will not operate as precedent if the Assessing Officer is in a position to bring sufficient materials on record warranting adoption of higher percentage of net profit or higher amount of disallowance of expenses. 8. It was clarified by the Tribunal that the said 7% rate could be applied only if the facts were identical. From the findings given by AO at page 13 of assessment order, it cannot be said that facts are identical. Therefore, we set aside o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hich totaled to Rs.4,26,796/- which has been reduced from total interest expenditure of Rs.22,56,225/-. 11. We have heard the rival submissions carefully and find that i t has been stated in the Paper Book that contents of the Paper Book were available before the AO which means details of interest were fi led before the AO. The detail of interest at page 21 to 25 clearly shows that total interest expenditure was Rs.22,56,225/- and receipts were Rs.4,26,796/- and only net expenditure of Rs.18,29,429/- has been claimed. Since only net interest expenditure has been claimed, no separate addition could have been made on account of interest income and accordingly, we find nothing wrong with the order of l d. CIT( A) and confirm the same. 12. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Therefore, even if sub-contract work was given on par, then that situation is advantageous to the assessee. Otherwise also, main contractor cannot earn the same profit as on sub-let work. Reliance was also placed on the decision of Hon'ble Punjab Haryana High Court in the case of CIT v Pran Nath Gupta (supra). Ld. CIT(A) observed that even in assessment year 2004-05, the value of sub-contract was reduced from gross receipts and the issue was covered by the decision of CIT V Pran Nath Gupta (supra) and accordingly, he deleted the addition. 14. Before us, ld. DR submitted that in case of Pran Nath Gupta (supra), the assessee had filed affidavits and had also produced the books of account. Moreover, the amount was held to be allowed as ded ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
