TMI Blog2014 (8) TMI 351X X X X Extracts X X X X X X X X Extracts X X X X ..... elt that the gross profit rate as mentioned in the statute in Section 44AD should be applied – assessee had declared income of ₹ 7,34,920/- and the assessed income @ 8% gross profit on gross receipt of ₹ 2,86,70,726/- would be about ₹ 22,93,658 - Section 44AD prescribes a thumb rule and is applicable to small assesses, but while prescribing the thumb rule the Legislature, it is a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... produce books of accounts in the assessment proceedings and thus best judgment assessment order under Section 144 of the Act was passed. 2. Learned counsel for the appellant-Revenue is correct that Section 44AD was not applicable. However, we find that in the assessment order the Assessing Officer has computed gross profit @ 25% and had allowed expenses to the extent of 75% of the gross receip ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ortunately did not undertake the said exercise. The Assessing Officer could have enquired and examined gross profit of other assessee to ascertain and determine the gross profit rate or adopted and applied some basis or standard. 4. It was in these circumstances that the appellate authorities including the Income Tax Appellate Tribunal (Tribunal, for short) felt that the gross profit rate as me ..... X X X X Extracts X X X X X X X X Extracts X X X X
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