TMI Blog2016 (7) TMI 954X X X X Extracts X X X X X X X X Extracts X X X X ..... ncome, the Ld. CIT(A) has committed an error that cost of material amounting to ₹ 24,39,40,964 and the cost of shuttering materials at ₹ 5,05,85,544/-, Kerala VAT at ₹ 1,12,17,821/-, Goa VAT at ₹ 3,95,726/- and other expenses where no profit element has been involved, were not excluded which totals to ₹ 31,07,29,889/-. Therefore, the said amount of ₹ 31,07,29,889/- included in the turnover, has to be essentially excluded while estimating the income and accordingly, the Assessing Officer is directed to apply the gross profit rate of 0.44% after excluding the said turnover of ₹ 31,07,29,889/- at ₹ 59,45,76,475/-. It is ordered accordingly. Thus, assessee gets the part relief and appeal of the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2. Whether on facts and circumstances of the case, the CIT(A) was right in restricting the addition to ₹ 39,83,347/- observing that, the average percentage GP could be most reliable tool for comparing the profit where as the CIT(A) also accepted that the net profit could be estimated, as there was no supporting bills and vouchers? The learned CIT(A) should have observed the fact that the total income estimated by the Assessing Officer is about 6% of the gross turn over which is fairly reasonable and therefore upheld the addition. 3. For these and other grounds that may be urged at the time of hearing, it is requested that the order of the Commissioner of Income tax(Appeals) may be set aside and that of the Assessing Officer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Cost of material 24,39,40,964.00 Site Running Expenses 6,75,851.00 Electricity charges 4,57,832.00 Water Charge 6,09,000.00 nsurance 10,59,000.00 Labour Cess 16,41,186.00 Loading and Unloading 1,46,965.00 31,07,29,889.00 Therefore the said amount of ₹ 31,07,29,889/- should be excluded from the gross turn over of ₹ 90,53,06,363/- while making the estimation of income. 7. The Ld. AR, Shri C.B.M. Warrier, CA argued further ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,99,85,294 16.5% 16.94% 2011-12 80,38,25,083 12,81,03,397 16% Out of the average gross profit of 16.94%, if the gross profit declared by the assessee at 16.50% is reduced, the difference comes to 0.44% which has been directed by the Ld. CIT(A) to adopt on the total turnover. While estimating the income, the Ld. CIT(A) has committed an error that cost of material amounting to ₹ 24,39,40,964 and the cost of shuttering materials at ₹ 5,05,85,544/-, Kerala VAT at ₹ 1,12,17,821/-, Goa VAT at ₹ 3,95,726/- and other expenses where no profit element has been involved, were not excluded which tot ..... X X X X Extracts X X X X X X X X Extracts X X X X
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