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TMI Blog2012 (12) TMI 591X X X X Extracts X X X X X X X X Extracts X X X X ..... ithout appreciating the facts of the case. 2. On the facts and circumstances of the case and in law the Ld. CIT(A) has erred in restricting the net profit rate from 12% to 7 %. of receipt as reduced by the cost of material supplied by the Govt./Govt. Agencies. 3 On the facts and circumstances of the case and in law the Ld. CIT(A) has erred in deleting addition of Rs 1,99,2.19/- on account of interest as the assessee has not shown bank interest whereas TDS was claimed as per the TDS certificates. 4. On the facts and circumstances of the case and in law the Ld. CIT(A)has erred in deleting the addition made by the A.O. of Rs. 2,12,762/- on account of margin in sub-contract work to the tune of 6% which was half of net profit. 5 On th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der dated 13.09.2011. The appellant is a partnership firm engaged in the construction of roads at various sites. The appellant has shown gross work done at Rs.12,08,18,617/- and declared net profit @ 4.02% of the total receipts. The AO found such disclosed net profit very low. The AO afforded various opportunities to produce the books of account and justify the disclosed net profit. The AO rejected the book result of the assessee, after mentioning about the survey proceedings u/s 133A of the Act, conducted at assessee's premises, on 12.03.2009. The AO applied net profit rate at 12%, by following the decision in the case of M/s Prabhat Kumar (ITA No. 293 of 2003), a Civil Contractor. Ld. CIT(A), following the findings of the Tribunal, in IT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reciation, interest and other expenses, once the income is determined by applying net profit rate to the receipts. The ground. No. 2 raised by the assessee is thus allowed and ground Nos. 4&5 are dismissed." 3.3.1 I am entirely in agreement with the findings given by Hon'ble ITAT, Chandigarh in ITA No. 865/Chd/2009 (supra). Hence, the assessing officer is directed to recompute the net profit by applying net profit rate of 8% instead of 12% to the contract receipts less cost of bitumen purchased from govt. agencies after verification and cost of the material supplied by the government . Ground of appeal no. 2 is allowed." 6. We have carefully perused the rival submissions, facts of the case and the relevant record. The findings of the Trib ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... " 7. Respectfully following the findings of the Tribunal in assessee's own case, and the direct decision of the Hon'ble jurisdictional Punjab & Haryana High Court, as reproduced above, the findings of the CIT(A) cannot be assai led, with similar fact-situation of the present case, and hence, the same are upheld. Thus, this Ground of appeal of the revenue is dismissed. 8. In Ground No.3, the revenue contended that CIT(A) erred in deleting addition of Rs.1,99,219/-, on account of interest, as the assessee has not shown bank interest, whereas TDS was claimed as per TDS certificate. 9. We have carefully perused the rival submissions, facts of the case and the relevant records. Ld. 'DR' referred to para 6.3 of the findings of ld. CIT(A). Ld. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 10. We have carefully perused the findings of the CIT(A), as well as that of the AO. In this case, the assessee contended that interest figure debited to the Profit & Loss Account is the net figure. It is evident that assessee has received interest, on some deposits made in the bank and against such interest income, claimed set off of the amount of interest paid by him. In this case, assessee has not produced books of account and the assessee has also failed to establish his case for setting off of interest paid against the interest income, which is assessable u/s 56 of the Act. The Hon'ble Supreme Court, in the case of CIT V Dr V.P. Gopinathan (2001) 248ITR 449 (S.C) held that where an assessee had invested money in a fixed deposit, in a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that no proper margin was involved in such sub-contract work and therefore, 100% of the subcontract value was to be allowed. AO was of the opinion that the assessee had not produced books of account and he would definitely retain some profit margin, while sub-contracting the work and therefore, 6% of net profit was applied by the AO, on the sub-contract and addition of Rs.2,12,760/- was made by the AO. Ld. CIT(A), on appreciation of the submissions and facts of the case and also following the decision of jurisdictional High Court, in the case of CIT V Pran Nath Gupta (supra) allowed the appeal of the assessee. The relevant findings of the CIT(A) are reproduced hereunder: "5.3 I have duly considered the submission of the Ld. Counsel for th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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