M/S. SATISH AGGARWAL & CO.,AMRITSAR. vs. ASSTT. COMMISSIONER OF INCOME-TAX, AMRITSAR.

ITA 176/ASR/2015Status: DisposedITAT Amritsar20 March 2019AY 2010-115 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal found that the estimated profit rate of 10% was excessive and directed the AO to compute income at 5.14% of contract receipts, considering past accepted profit rates. However, the claim for depreciation deduction from the estimated profit was dismissed.

What were the facts?

The assessee, a civil contractor, had discrepancies in its purchase of soil and wage payments, leading the AO to reject its books of account. The AO estimated net profit at 10% of turnover, which was upheld by the CIT(A).

What were the issues?

Whether the estimated net profit rate of 10% was excessive, and whether depreciation should be allowed from the estimated profit after rejection of books.

Which sections of the Income-tax Act were involved?

Section 145(3),Section 144,Section 40(b)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, AMRITSAR BENCH, AMRITSAR

Before: Sh. N. S. Saini & Sh. N. K. Choudhry

Hearing: 22.02.2019Pronounced: 22.03.2019

Per N. S. Saini, Accountant Member:

This is an appeal filed by the assessee against the order of CIT(A)-II, Amritsar dated 30.01.2015. 2. The sole issue involved in this appeal is that the Commissioner of Income Tax (Appeals) erred in estimating the net profit @ 10% of the turnover which is excessive and not allowed depreciation of Rs.33,77,901/- from the profit so estimated.

3.

The brief facts of the case are that the assessee firm is a civil contractor. During the year under consideration, the assessee executed different contract works of government as well as private parties. The total contract receipts of the ITA No. 176/Asr./2015 2 Satish Aggarwal &

The order continues below.

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