1999 (3) TMI 450

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....or the assessment year 1995-96. The first ground of objection by the revenue is against the order of the learned CIT(A) in directing the Assessing Officer to assess the interest income on term deposits and fixed deposits as business income. 2. The assessee is a civil contractor. Return of income declaring total income of Rs. 1,87,320 was filed on 31st October, 1995. With regard to the first gro....

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....net profit before depreciation and payment to partners at 6.5 per cent which was low, according to the Assessing Officer. He further noted that the assessee has not maintained any work-wise account. It was the case of the assessee that it was not possible to verify the value of the work performed at each site, material consumed and the labour expenses incurred etc. The assessee replied that becaus....

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.... this was made to show the expenses at higher side. He made the lump sum addition of Rs. 30,000 resorting to section 145(1). When the matter was carried before the learned CIT(A), he reduced the addition to Rs. 15,000 on the ground that the learned Assessing Officer has pointed out any specific defects in the books of account. However, he held that in the absence of any explanation whatsoever, for....

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.... Assessing Officer noticed that on some of the FDRs the assessee had provided interest only for part period of the year whereas the assessee is following the mercantile system of accounting. Therefore, the Assessing Officer estimated the addition interest upto 31st March, 1995 at Rs. 10,100 and added it to the total income of the assessee. When the matter was carried before the learned CIT(A), he ....