2014 (1) TMI 342

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.... the same are clubbed and heard together, therefore, a common order is passed for the sake of convenience. ITA NOS. 1038, 1039, 1040 & 1041/HYD/2010 AND C.O. NOS. 9, 10, 11 & 12/Hyd/2011 - by Assessee for assessment years 2004-05 to 2007-08. 2. These appeals and C.Os are directed against a common order of CIT(A), Tirupathi dated 14/05/2010. 3. Briefly, the facts of the case are that the assessee firm constituted by a deed of partnership on 08/05/2003 is engaged in construction and sale of flats. There was a search and seizure action u/s 132 carried out in the case of Sri T.S. Rajashekara Gupta on 09/03/2007. Along with action u/s 132, a survey u/s 133A had been conducted at one of the construction sites i.e. Yadava Colony, AIR Bye-pass R....

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....nt were not made available to the search team but they were furnished later during the assessment proceedings only and hence came to a conclusion that the same were not reliable. The Assessing Officer had assailed the method of accounting adopted by the assessee that no true profits can be deducted from thereon. Accordingly, he rejected the books of account after giving an opportunity and estimated the net profit at 28% of the sale proceeds offered in the returns of income for each assessment year involved here: S.No. AY Total receipts as per return of income Net profit estimated at 28% (In Rs.) 1 2004-05 45,75,000 12,81,000 2 2005-06 1,67,43,000 46,88,000 3 2006-07 1,78,66,000 50,02,000 4 2007-08 3,76,67,000 1,05,46,000....

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.... comparison but the Assessing Officer has not brought any such comparable cases while harping upon 28% net profit but he had relied upon hypothetical extrapolations. Hence, this is nothing but a high pitched addition without appreciating the material available on hand and without considering the appellant's explanations and without bringing any substantive material on record. Hence, the Assessing Officer is directed to delete the additions arising out of estimation of net profit at 28%, as baseless and imaginary." 8. Aggrieved, by the order of the CIT(A), the revenue is in appeal before us for the assessment years under consideration regarding deletion of additions arising out of estimation of net profit rate at 28% of gross receipts. 9. ....

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.... other three assessment years in question without examining the respective accounts and their reliability. Thus, the rejection of books of accounts is held to be without any basis and reasoning." 10. In view of the above, in our considered view, unless and until, the Department challenges the decision of the CIT(A) on rejection of books of account, cannot challenge the deletion of additions. Therefore, we dismiss the grounds taken by the Revenue in all the assessment years under consideration. 11. In the result, all the four appeals of revenue are dismissed. 12. Coming to the C.Os. of 9 to 12/Hyd/2011, as we have upheld the order of CIT(A) in revenue appeals, the grounds raised by the assessee in C.Os. become infructuous and the same are....