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TMI Blog2018 (4) TMI 1956X X X X Extracts X X X X X X X X Extracts X X X X ..... ccording to law. Prayed that provision of Section 144 are not applicable, the assessment order be annulled and the income returned be accepted. 2. That the learned CIT (A) further erred in estimating Net Profit of 3% on gross receipt against 8% applied by learned Assessing Officer, rejecting the ground to accept the books result, thereby maintaining an addition of Rs. 57,43,976/-(65,25,456- 7,81,480) to the book result. Prayed to accept the book result. 3. That, without prejudice, the learned CIT (A) erred in dismissing the ground to allow depreciation amounting to Rs 37,02,663/-. Prayed that even, without prejudice, where Net Profit rate is applied, depreciation is allowable, which be allowed as claimed in return at Rs. 37,02,663 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d to take into account all relevant materials and then framed the assessment to the best of his judgment. This means that the Assessing Officer is bound to consider the material available on his record. We find that the Assessing Officer has completely ignored the past financial results of the assessee. The past financial results of the assessee are as under:- G.N. CONSTRUCTION, AMBIKAPUR-A.Y. 2011-12 Comparative Trading Results Sl No. Particulars A.Y 2011-12 A.Y 2010-11 A.Y 2009-10 A.Y 2008-09 1 Date of Order 2 7.02.2014 29.06.2012 23.03.2011 29.12.2010 2 Order passes u/s 144(1) 143(3) 143(3) 143(3) 3 Gross receipts (Rs.) 21,75,15,204 21,56,57,249 5,73,37,186 6,15,57,130 4 Returned income (Rs.) 7,81,480 4,79,0 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... estimating the net profit @ 8%. Though the First Appellate Authority has reduced the net profit rate to 3% but at the same time he also ignored the past history of the assessee. In our considered opinion considering the nature of business of the assessee the profit rate as declared appears to be reasonable. No comparable cases have been brought on record by the Assessing Officer or the CIT(A) to justify the adoption of the profit rate. Therefore we are inclined to accept the profit rate shown by the assessee. The Assessing Officer is directed to accept the net profit rate as shown by assessee in its financial statements. The addition on this ground is directed to be deleted. 12. Ground No. 3 relates to the non allowability of the depreciat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ould be estimated and the deductions and allowances including the depreciation allowance should be separately deducted from the gross profit. If it is considered that the net profit should be estimated it should be estimated subject to the allowance for depreciation and the depreciation allowance should be deducted there from. 3. Even where best judgment assessment is made, the above procedure should be adopted provided the required particulars have been furnished by the assessee. In cases where required particulars have not been furnished by the assessee and no claim for depreciation has been made in the return, the ITO should estimate the income without allowing depreciation allowance. In such cases the estimate of net profit would be n ..... X X X X Extracts X X X X X X X X Extracts X X X X
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