2015 (10) TMI 164

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....omparable cases relied by the appellant/assessee and thereby confirming the applicability of Net Profit Rate of 8% of Gross Receipts solely on the ground that, in the preceding years, Net Profit Rate of 8% was confirmed by the appellate authorities, and 3. the appellant reserves the right to add, alter, amend or delete any of the grounds of appeal before hearing." 2. Ground No. 1 of the assessee's appeal is against rejection of books U/s 145(3) of the Income Tax Act, 1961 (in short the Act), which has not been pressed, therefore, we dismiss the ground No. 1 of the appeal. 3. Ground No. 2 of the appeal is against confirming the addition of net profit rate @ 8% by the learned CIT(A). The assessee is a civil contractor. The assessee has sho....

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....ing Officer made assessment @ 8% on gross receipts and subject to depreciation and interest. 4. Being aggrieved by the order of the learned Assessing Officer, the assessee carried the matter to the learned CIT(A), who had confirmed the addition by observing as under:- "3. I have duly considered the submissions of the appellant. The appellant is engaged in the business of civil construction. The A.O. noticed that the assessee had shown net profit of Rs. 1,90,554/- on total contract receipts of Rs. 7,04,58,779/-. The A.O. had rejected the books of account on the ground that the assessee was not maintaining stock records and day to day consumption records. The assessee had not maintained vouchers, payment sheets or muster roll in respect of ....

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....s year also it shall meet the end of justice to adopt such net profit rate of 8% subject to allowable depreciation and interest. On this basis the net profit comes to Rs. 39,20,183/- and after reducing allowable depreciation and interest as per working given by the A.O. as per assessment order at Rs. 15,91,594/-, the remaining business profit is worked out at Rs. 23,28,589/-. In this manner, the appellant gets a relief of Rs. 12,25,058/-." The Hon'ble Jaipur Tribunal in the case of assessee for A.Y. 2001- 02 and A.Y. 2002-03 vide its order in ITA No. 205/JP/2006 dated 26/10/2007 and ITA No. 146/JP/2006 dated 26/10/2007 has upheld the rejection of books of account U/s 145(3) of IT Act and NP rate of 8% subject to allowance of interest and d....

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....the action of the A.O. Thus, ground No. 2 and 2.2 of the assessee are dismissed". Further in A.Y. 2004-05, the appellant had shown N.P. of 7.03% which was estimated at 8% by CIT(A) and also sustained by the Hon'ble ITAT. There is no material change in the facts and circumstances of the case during the year as compared to the preceding years. The counsel of the appellant has placed reliance on the decision in the case of M/s Vijay Builders. However, the facts in the cited case were distinguishable. In the case of M/s Vijay Builder, the assessee had carried out civil projects as backward areas of Kutch region. Further these were defence related contracts and due to lack of basic infrastructure, transport facility and skilled labour, net prof....