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Even as per the provisions of Section 44 AD, of the Income Tax Act 1961, applicable to the assesses engaged in the business of civil construction or supply of labour for civil construction, whose gross receipts does not exceed Rupees Sixty lacs for the financial .year 2011-12, the deemed net profit is 8%. Your honour will appreciate the fact that with increase in turnover, the net profit ratio is bound to decrease. This is because of the facts that for executing the contracts of larger values, we have to be more competitive. This is quiet clear from the facts that we have to quote tenders below the base prices in order to survive in the competition and avail the tenders. Similarly, overhead expenses goes up sharply when we increase the turnover (Employment of technical personnel with high salaries, wastage/leakages due to lack of personal attendance at all levels, heavy investments in machineries and other fixed assets results in disproportionate rise in operational costs). As such net profit offered by us for AY.2012-13 @ 13.92% is very much reasonable. Hon. Income Tax Settlement Commission, Additional Bench II, Mumbai has also upheld the view in the case of M/s. Bhavsar Construction Company in its judgment dated 23rd Jan. 2014. Sir, Survey u/s.133 A of the Income Tax act 1961 was carried out at our business premises during the period 01st Aug. 2012 to 3rd Aug. 2012. In order to buy peace of mind & avoid protracted litigation, I have offered additional income of Rs. 7,01,69,218.00 for taxation over and above the regular Income in the course of survey for three financial years as under-