Application of 8% Net Profit Rate on Gross Receipts under Contract is valid unless Illegality is Proven: Calcutta

The Calcutta High Court upheld an ITAT decision allowing the application of an 8% net profit rate on gross receipts in contracts, unless illegality is proven. The ruling affirms that such rates are valid if not challenged on grounds of illegality. This decision impacts contractual disputes involving financial assessments based on gross receipts, highlighting the importance of proving any alleged illegalities to contest such rates effectively.