2014 (2) TMI 318

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....and VII are general in nature and therefore need not be adjudicated. 2. The main contention of the Revenue in Ground no II to VI is that the learned CIT(A) erred in allowing relief instead of treating the profit at 12% on gross receipts as admitted assessee (wrongly stated as admitted by Assessing Officer in the ground II) in the course of survey proceedings. The other contention is that in the group concern i.e., M/s. R-Nest Construction similar estimation of 12% of gross receipts was honoured by that assessee. Therefore, learned CIT(A) erred in giving relief. 3. Briefly stated, assessee is in the business of construction of residential apartments and in the course of survey conducted under section 133A on 19.09.2008 i.e., during the....

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....ned CIT(A) went on to analyse the books of accounts maintained and vide paras 5.6, 5.7 and 5.8 came to the conclusion that explanation offered by the assessee were not substantiated and so accounts of the assessee are held to be unreliable and as such the profits are required to be estimated. Having considered that the books of accounts of the assessee under reference are not reliable, the learned CIT(A) went on to consider the estimation of income vide para 5.9 and decided the issue as under : "5.9. Having conceded that the books of the account of the assessee for the year under reference are not reliable and income need to be estimated, the next relevant question would be on the rate of profit that is to be adopted one estimation basis....

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....on the day of survey and then only statement was given under section 131(3). Therefore, CIT(A) erred in not considering the admission by the assessee. It was further submitted that by the time survey was conducted, assessee receipts from various projects were to the tune of Rs.3.97 crores and many projects have been completed by that time. Out of balance two projects which are under completion on the date of survey, further Rs.1.23 crores only has already been received. Therefore, about 80% of gross receipts has already been received by the time of survey therefore, CIT(A) erred in reducing the estimation, with out considering the statement. 7. Learned A.R. placed on record paper book containing various projects, its receipts, audited re....