TMI Blog2017 (4) TMI 1572X X X X Extracts X X X X X X X X Extracts X X X X ..... business of the assessee is between 1.60 and 3.31 and at no point of time any objection is taken by the AO on the ground that in the kind of business of the assessee average rate of profit would be anything around 8%. We do not find any rational in the AO estimating the profit at 8% and the consistency of the net profit as was established by the accepted books of account in the business of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me and style of M/s Alok Builders and doing contract work mainly in Himachal Pradesh for NHPC Ltd., NTPC Ltd., Himuda Dharamshala and in Haryana for PWDB R Branch Kaithal. For the A.Y. 2010-11 return was filed declaring the total income of ₹ 10,44,000/-. Ld. AO in his order dated 28/03/2013 observed that the books of account of the assessee are not reliable as such he assessed the income o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted at 2.46 which was accepted in the immediately preceding AY 2009-10. Per contra it is the argument of the Ld. DR that the AO has given the cogent reasons for rejection of the books and estimation of 8% of the profit ratio. He submitted that the profit ratio suggested by the assessee at 2.46 which is equivalent to the profit ratio of the AY 2009-10 is too low and cannot be accepted. According to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... O estimating the profit at 8% and the consistency of the net profit as was established by the accepted books of account in the business of the assessee was something between 1.60% and 3.31% as such taking a pragmatic view, we find that 3% of the profit ratio of the contract receipt would meet the ends of justice. With this view of the mater, we direct the AO to estimate the profit of the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X
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