TMI Blog2002 (1) TMI 14X X X X Extracts X X X X X X X X Extracts X X X X ..... ich was confirmed by the Commissioner of Income tax (Appeals) committed an error in reducing the rate of net profit from 12.5 percent to 10 percent without assigning any good reasons. - We have carefully gone through the judgment of the Tribunal. We are not impressed with the contention of Mr. Bhandawat, to the effect that no reasons have been assigned by the Tribunal for confirming the finding of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of section 145 by applying the net profit rate of 12.5 percent and made trading addition of Rs. 7,36,107. The Commissioner of Income-tax (Appeals), on appeal by the assessee reduced the net profit rate from 12.5 percent to 10 percent as in his opinion the estimated net profit rate of 12.5 percent was excessive. On appeal by the Department the Tribunal examined the issue with respect to estimate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ble as no substantial question of law is involved as required by section 260A of the Income-tax Act. It is also submitted that the case does not fall in any of the parameters laid down by this court in Deputy CIT v. Marudhar Hotels P. Ltd. [2000] 245 ITR 138. We have carefully gone through the judgment of the Tribunal. We are not impressed with the contention of Mr. Bhandawat, to the effect tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The profit in work account last year was Rs. 9,30,350. This year this profit in work account is Rs. 12,24,627. There had thus been an overall addition of more than Rs. 3,00,000 to this profit, with the same staff and facilities. The net profit last year was nil. It was a loss of Rs. 24,427 as against which this is plus (profit) of Rs. 18,642. (b) When tenders are given the current market rate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es not relate to estimation of net profit and as such it has no application to the facts of the case. The Kerala case ([1988] 173 ITR 525) only speaks that the question of estimation of net profit involves a question of law. In Marudhar Hotels P. Ltd.'s case [2000] 245 ITR 138, it is held by the Division Bench of this court that simply because a question of law is involved, section 260A is not att ..... X X X X Extracts X X X X X X X X Extracts X X X X
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