Chitra Venkataraman, J.

The assessee is on appeal as against the order of the Income Tax Appellate Tribunal dated 06.09.2012 in ITA No.370/Mds/2011 and ITA No.370/Mds/2011 relating to the assessment years 2006-2007 and 2007-2008 respectively, raising the following questions of law:

1. Whether in the impugned assessment year, income can be assessed at 8% rate on the gross contract receipts invoking S.44AD of the Act when the turnover of the assessee had exceeded the Rs.40 lakh limit prescribed in the Act? And whether the Tribunal can uphold such a patently erroneous assessment especially after making a specific finding in the beginning of para 7 of the impugned order that S.44AD of the Act has no application in the instant case as the turnover has exceeded Rs.40 lakhs/

2. Whether the Tribunal ought to have taken cognizance of the violation of natural justice principles by the AO while making the assessment u/s.143(3) because a best judgment assessment as per S.144 can only be made after providing reasonable opportunity of being heard to the Assessee (by issuing a show cause notice) in consonance with statutory procedural requirements mandated in S.145(3) and S.144 of the