Law:

Section:

Section 145 of the Income-tax Act, 1961 - Method of accounting - Rejection of accounts - Assessment year 1994-95 - Where appellate authorities failed to discuss any material on basis of which they came to conclusion that net profit rate of 13 per cent as against 10 per cent assessed by Assessing Officer in assessment proceedings would be justified, matter was to be remitted back to Commissioner (Appeals) for a fresh decision [Matter remanded] The Assessing Officer had applied a net profit rate of 10 per cent on the total receipts against the rate of 8 per cent shown by the assessee. The Commissioner (Appeals) not only upheld the order of the Assessing Officer but enhanced the rate of net profit from 10 per cent to 13 per cent. The Tribunal upheld the order of the Commissioner (Appeals). Held that both the appellate authorities had failed to discuss any material on the basis of which it could come to the conclusion that 13 per cent net profit rate was justified. In the absence of any reference to the material on record, there was no other option with the instant Court except to set aside the orders under appeal and remand the matter to the Commissioner (Appeals) to examine the same afresh. The matter was remitted back to the Commissioner (Appeals) for fresh decision on the basis of the material available on record, in accordance with law. K.L. Goyal and Sandeep Goyal for the Appellant. Vivek Sethi for the Respondent. JUDGMENT Ajay Kumar Mittal, J. - This order shall dispose of IT Appeal Nos. 449, 457 and 478 of 2006 as common questions of law and facts are involved therein. For brevity, the facts are being extracted from IT Appeal No. 478 of 2006. 2. This Court vide order dt. 21st Aug., 2007 while admitting the appeal had framed the following substantial questions of law for determination by this Court : "(i)Whether on the facts and circumstances of the case, the decision of the Tribunal upholding the net profit rate at 13 per cent of the total contract receipts (as compared to 8 per cent fixed under s. 44AD) and 10 per cent assessed by AO in reassessment proceedings and 8 per cent assessed in original proceedings, is perverse in nature and erroneous in law and,…

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