- (1.) This appeal by the Revenue against the order passed by the Income Tax Appellate Tribunal, Jodhpur Bench, Jodhpur ( ITAT ) in ITA No. 04/JU/2005 for the Assessment Year 1999-2000 has been admitted for consideration on the following substantial question of law:- Whether on the facts and in the circumstances of the case, the ITAT was justified in allowing the deduction on account of sales tax payment out of the income estimated by applying net profit rate without estimation of income at net profit rate being subject to such deduction
(2.) The assessee, said to be deriving his income from contract work, filed the return for Assessment Year 1999-2000 declaring the income of Rs.2,08,230/- with tax audit report.The same was processed under Section 143(1) on 27.03.2000 at the same figure. The assessee had shown total contract receipt of Rs. 1,69,05,812/-. There was material supplied by the department at Rs.25,95,066/-.
(3.) The assessee had shown gross profit of Rs.17,35,435/-. The assessee had also executed contract work through sub-contractor and received sub-letting commission at Rs. 34,958/-. The case was picked up for scrutiny. Books of accounts, as produced, were rejected by the Assessing Officer ( AO ) for several reasons including those of not maintaining the stock register, muster rolls and several expenses being not supported by adequate vouchers.;