Addition u/s 68 - applied rate of profit

[Ashok Goyal]

A.O has applied rate of profit in case of civil contractor and also made additions u/s 68 for cash deposited in Bank.My query is regarding addition u/s 68 is weather A.O is justified in making separate additions when he has rejected books of account and applied net profit rate. I wants case laws in support.

AI Summary

Contractor Disputes Tribunal's Section 68 Cash Deposit Additions After Books Rejected; Considers Rectification Petition A civil contractor questions the justification of an Assessing Officer (A.O) making additions under Section 68 for cash deposits after rejecting the books of account and applying a net profit rate. An expert suggests proving cash generation based on the gross profit rate. The contractor notes that the CIT(A) granted relief, but the Tribunal reversed it. The expert advises establishing the cash balance at deposit time and suggests a rectification petition if the Tribunal misunderstood the facts. The contractor argues that with rejected books and an applied net profit rate, separate additions under Section 68 are incorrect, seeking remedies for the Tribunal's reversal.