CIT Vs. KHOKHAR CONSTRUCTION CO.

JUDGEMENT

(1.) INSTANT appeal has been filed by the department U/s. 260A of the Income Tax Act, 1961 ("the Act") assailing order of Income Tax Appellate Tribunal ("Tribunal") dt. 24.03.2006 as regards assessment years -1997 -98.

(2.) THE respondent assessee as alleged in the appeal is a civil contractor and declared gross profit of Rs. 16,51,035/ - and net profit of Rs. 2,45,047/ - against contract receipts for the assessment year 1997 -98. The assessing officer rejected the books of accounts of the assessee U/s. 145(3) of the Act and applied net profit rate of 10% on the contract receipts for the relevant assessment year and allowed deduction in respect of depreciation, salary to partners and interest to partners therefrom to arrive at the figure of income from business.

(3.) AN appeal came to be preferred by the assessee to the Commissioner of Income Tax (Appeals) -III, Jaipur (CIT(A)) and rate of profit was reduced to 8% and also the interest from FDRs was directed to be taxed under the head "Income from Business and Profession". Against the order of the CIT(A) dt. 31.03.2003 appeal came to be preferred by the department before the Tribunal. However, the learned Tribunal while dismissing the appeal preferred by the appellant affirmed rate of profit at 8% instead of 10% and assigned cogent reasons. Against the order of the Tribunal, the department has preferred instant appeal before this Court after a delay of 79 days and the ground appears to be that the cogent reason has not been assigned by the learned Tribunal while passing order impugned.