TMI Blog2021 (1) TMI 464X X X X Extracts X X X X X X X X Extracts X X X X ..... d:- 31-12-2020 - P. Madhavi Devi , Member (J) And A. Mohan Alankamony , Member (A) For the Appellant : Sunil Kumar Pandey , D.R. For the Respondents : S. Rama Rao , Adv. ORDER P. Madhavi Devi, Member (J) The appeal is filed by the Revenue and the Cross Objection is filed by the assessee against the order of the Ld. CIT(A), Kurnool dated 15.06.2018. 2. It is observed the Revenue's appeal is filed with a delay of 02 days and being satisfied with the reasons given by ACIT, Circle 1, Kadapa vide letter dt. 26.09.2018, the delay is condoned. The Cross Objection by the assessee is filed with a delay of 169 days and in the Petition for Condonation of delay, the assessee submitted that the order of CIT(A) was addre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing the books of accounts and claimed that profit in this line of business is 6% on own contracts. It was submitted that the AO should have estimated the income at reasonable percentage which is about 6%. The CIT(A) accepted assessee's contentions, but held 7% of gross receipts to be reasonable profit percentage. He therefore partly allowed assessee's appeal, against which, Revenue is in appeal before us, while the assessee has filed Cross Objection seeking relief of the balance amount also. 4. Ld. DR submitted that assessee has not filed any details either before the AO or before the CIT(A), and, therefore, the CIT(A) was wrong in estimating the income at 7% of gross receipts. Ld. DR submitted that in the absence of any evidence ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e for A.Y. 2007-08 is 4.98% as per chart placed at page 20 of PB. However, for A.Y. 2006-07, assessee has disclosed net profit of 2.42%. Considering the facts that assessee could not give valid reasons for not producing books of account and other details as called for by the AO, we hold that estimation of income is justified. However, the net profit rate of 8% as applied by authorities below is excessive considering the GP/NP rate of preceding years from chart at page 20 of PB, it will be fair and reasonable to apply the net profit rate of 6% of the total contract receipts at 6% for both assessment years under consideration. But, the relevant A.Y. before us in 2012-13 and the CIT(A) without examining the profit percentage in the years ..... X X X X Extracts X X X X X X X X Extracts X X X X
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