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2016 (2) TMI 163 - ITAT JAIPUR

2016 (2) TMI 163 - ITAT JAIPUR - TMI - NP rate determination - Held that:- NP rate which should be considered for examination is NP rate before depreciation, interest and remuneration to partners. Nothing has been brought to your notice for deviating from the said settled position. Further, during the year under consideration, the NP rate before depreciation, interest and remuneration to partners is disclosed by the assessee at 9.02% which is on a progressive scale hence there is no basis to dis .....

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essee by : Shri Mukesh Khandelwal CA For The Revenue by : Shri Raj Mehra (JCIT) ORDER PER SHRI VIKRAM SINGH YADAV, AM This is an appeal filed by the Revenue against the order of CIT(A)-II, Jaipur dated 15.07.2014 wherein the Revenue has taken the following grounds of appeal which are reproduced as under: 1. Whether on the facts and in the circumstances of the case and in law the ld. CIT(A) has erred in deleting addition of ₹ 9,69,670/- out of expenses on account of purchase of grit, rodi, .....

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rcumstances of the case and in law the ld. CIT(A) has erred in deleting the disallowance of ₹ 4760/- out of telephone expenses. 2. The brief facts for the issue under consideration are that the assessee firm is Civil Contractor and derives income from execution of Govt. Civil contract. During the year under consideration the ld. AO has rejected the books of account u/s 145(3) of the Act which has been subsequently upheld by the ld. CIT(A). Further the AO has disallowed 10% of expenditure o .....

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ra 3.3.2 to 3.3.3 of its order which read as under: 3.3.2 In all the assessment years, the ITAT deleted the trading additions on the ground that the net profit rate before depreciation, interest an d remuneration to partners was progressive and that the past history of the assessee could not be ignored in ITA no.1220/JP/2010 for A.Y. 2007-078 the ITAT observed as under: The trading results shown by the assessee is better as compared to trading result shown in earlier year. The department s conte .....

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rlier year. 3.3.3 In this assessment year, the Assessing Officer while disallowing 20% of petrol & diesel expenses, vehicle repairing expenses and deprecation has also included the expenses incurred on JCB machines, mixture machines, tractors, road rollers etc. on which there cannot be any element of personal use. Further more, in this assessment year, the net profit before depreciation, interest and remuneration to partners is 9.02% which is higher than the similar net profit percentage for .....

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d submitted that the assessee has disclosed net profit before interest & salary to partners and depreciation @ 9.02% which is higher than the n.p. rate as disclosed in the past years and the same has been accepted by the ld. AO but at the same time the ld. AO has made adhoc disallowance which will result net profit rate of 16.06% subject to interest, salary and depreciation which is extremely on higher side and at the same time, does not have any appropriate basis for such expenses. The ld. .....

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