| |
| The Tax Publishers2020 TaxPub(DT) 0269 (Asr-Trib) INCOME TAX ACT, 1961
Section 145
Where revised return was filed as per the terms of the provisions of section 139(5), the original return shall be treated as withdrawn. However, AO on the basis of original return of income pointed out some discrepancies and rejected the books of account, since Tribunal in the case of Mohan Singh Contractor [I.T.A. No.59(ASr)/2012, dt. 5-6-2012] had considered 5% NP rate had reasonable in the case of contractor.
|
Accounting method - Net profit determination - CIT(A) confirming the net profit rate of 8% -
The sole issue arose before this Tribunal as to CIT(A) had erred in both facts and law by confirming the net profit rate of 8% without any logical basis whereas assessee had produced complete books of account and AO could not find any material defect in the books of account. Held: Assessee submitted before CIT(A) by relying on the decisions in the case of Dhampur Sugar Mills Ltd [(1973) 90 ITR 236 (All) : 1973 TaxPub(DT) 0200 (All-HC)] that where revised return was filed as per the terms of the provisions of section 139(5), the original return shall be treated as withdrawn. However, AO on the basis of original return of income pointed out some discrepancies and rejected the books of account. Tribunal in case of Mohan Singh Contractor [I.T.A. No.59(ASr)/2012, dt. 5-6-2012] had considered 5% NP rate had reasonable in case of contractor. Therefore, AO was directed to apply 5% NP rate in the case of assessee.
REFERRED : CIT v. Vidya Sagar Saini [IT Appeal No. 80 of 2012, dt. 13-2-2013] CIT v. Shivam Construction Co. (in ITA No. 183 of 2007 dated 14-5-2007) Dhampur Sugar Mills Limited v. CIT (1973) 90 ITR 236 (All) : 1973 TaxPub(DT) 0200 (All-HC) Mohan Singh Contractor v. ITO [I.T.A. No.59(ASr)/2012, dt. 5-6-2012]
FAVOUR : partly in assessee's favour
A.Y. : 2010-11
IN THE ITAT, AMRITSAR BENCH
 SUBSCRIBE FOR FULL CONTENT
|