2015 (8) TMI 887

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2015 (8) TMI 887

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....uced by the assessee for not producing the additional evidence before the A.O., especially when the evidence was available to the assessee at the assessment stage. 2. The Ld. CIT(A) has erred in law & on facts of the case in placing reliance on A.O's action taken report dt. 15.02.2013 while deciding the appeal, failing to appreciate the fact that the A.O's said report was not a remand report, and on the contrary he submitted only that the investigation was pending for want of Bank's report, and the desired report i. E. remand report would be sent as soon as the report was received from the Bank. 3. The Ld. CIT(A) has erred in law & on facts of the case in estimating the net profit at 5% as against 10% estimated by the A.O. wit....

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....(3) of the Act without appreciating the fact that neither any commission was debited in P&L account with regard to payment to agent for services rendered by him nor any evidence regarding payment of commission was produced by the assessee, which is a pre-condition because an agent is engaged to execute some specific work on commission basis. In doing so, the Ld. CIT(A) has erroneously placed reliance on belated affidavit filed by the agent which is an afterthought to cover up cash payments made in a day in excess of Rs. 20,000/-. 7. The Ld. CIT(A) has erred in law & on facts of the case in holding that no disallowance can be made in case the income estimated by applying net profit rate without appreciating the legal position that the Hon&#....

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....d in short "the Act") on the basis of material available before him. The Assessing Officer accordingly estimated the net profit rate at 10% on the gross receipts of the contract work, resulting into an addition of Rs. 62,96,246/-. The Assessing Officer did not allow deduction of depreciation, interest and salary to partners relaying upon the provisions of section 184(5) of the Act. 4. Aggrieved, the assessee preferred an appeal before the ld. CIT(A) with the submission that the estimation of net profit rate by the Assessing Officer is quite excessive and the same may be reduced. The assessee has furnished details of net profit declared by the assessee in the immediately preceding years. The ld. CIT(A) has taken note of all these facts and ....

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....counsel for the assessee, besides placing reliance upon the order of the ld. CIT(A), has contended that before the ld. CIT(A) assessee has furnished all the relevant evidence and the ld. CIT(A) having looked into therein has estimated the net profit rate at 5%. Moreover, the ld. CIT(A) has also taken cognizance of the net profit rate assessed during the assessment years 2008-09 and 2009-10. Therefore, there is no infirmity in the estimation of the net profit rate by the ld. CIT(A). 8. Having carefully examined the orders of the lower authorities in the light of the rival submissions, we find that undisputedly the Assessing Officer has afforded various opportunities to the assessee to produce the cash books, bank passbooks, journals, etc. i....

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....7-08 and 3.92% in assessment year 2008-09. Keeping the past net profit rate adopted, we find no infirmity in the order of the ld. CIT(A) in which he has estimated the net profit rate at 5% of the gross receipts. Accordingly we uphold the estimation of the net profit rate. 9. Now the only dispute is with regard to further deduction of depreciation, interest and salary to partners. It was argued by the ld. counsel for the assessee that the provisions of section 184(5) of the Act cannot be invoked, but on perusal of the provisions of section 184(5) of the Act we find that wherever the assessment is framed under section 144 of the Act on account of non-production of the requisite documents or the books of account by the assessee, no further de....

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....ore the Tribunal and the ld. D. R. has placed reliance upon the order of the Assessing Officer. 13. The ld. counsel for the assessee, on the other hand, has placed reliance upon the judgment of the Hon'ble jurisdictional High Court in the case of CIT vs. Banwarilal Banshidhar, 148 CTR 533, in which it has been categorically held that when income of the assessee was computed applying the gross profit rate and no deduction was allowed in regard to the purchases of the assessee, there was no need to look into the provisions of section 40A(3) of the Act and rule 6DD(j) of the Rules. No disallowance could have been made in view of the provisions of section 40A(3) of the Act read with rule 6DD(j) of the Rules, as no deduction was allowed to ....

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2015 (8) TMI 887