TaxTMI 
TaxTMI 
2016 (4) TMI 507
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....3. Facts of the case, in brief, are that the assessee is an individual engaged in the business of plastic moulded furnitures, job work and construction. He filed his return of income on 15-10-2010 declaring total income at Rs. 49,76,110/- and agricultural income of Rs. 20,000/-. During the course of assessment proceedings, the AO noted that assessee is conducting business in individual status under name and style of: (a) M/s. Unity Ply at Jalgaon and Chalisgaon wherein the assessee is doing business of trading on retail basis of plastic moulded furniture, chairs, Tata Sky Dish, DVD etc.; (b) M/s. Siddhant Industries where the assessee is doing job work of Aluminum rod supplied by Emco Ltd.; (c) M/s. Siddhant Builders and Developers whe....
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.... as against the total receipt of Rs. 1,78,16,222/- the labour charges paid for the first period, i.e. 01-04-2009 to 28- 10-2009 is only Rs. 22.50,907/-. Thus, the percentage of the labour charges paid for the first period comes to 12.63%. The AO, therefore, applied the same percentage of 12.63% for the second period where the gross receipt was Rs. 4,58,44,592/-. By applying the same ratio, he noted that the labour charges for the second period comes to Rs. 57,90,172/-. Since the assessee has debited the labour payment of Rs. 1,80,06,411/- the AO treated the amount of Rs. 1,22,14,391/- being the difference between the two as excess labour charge. 5.2 Similarly, the AO analysed consumption of various materials such as steel, cement, murum, s....
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....relating to return of notices u/s.133(6)/summons u/s.131 to the labour contractors is concerned it was argued that these labourers and contractors frequently change their places, therefore, those letter might have returned unserved where such labourers had changed their places. However, when the return of such notices was brought to the notice of the assessee by the AO the assessee had contacted those labourer/contractors and filed their confirmations and account extracts by speed post. The various disallowances made by the AO were challenged and it was submitted that if the assessment done by the AO is accepted it will give a profit rate of 64.46% which is just not possible in construction business. It was submitted that since there were c....
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....cuting civil contract for Emco Ltd., Jalgaon which will properly supervise and check the quality of the work and the said company will not compromise on the quality of the end product, therefore, the addition of such huge amount by the AO is not justified. He accordingly held that the estimate at 7% of the gross receipt will meet the ends of justice. 9. Aggrieved with such order of the CIT(A) the Revenue is in appeal before us. 10. The Ld. Departmental Representative submitted that the decision of the Ld.CIT(A) is not acceptable since the AO has made the addition on the basis of factual position as determined on the basis of material made available on record. He submitted that all though the provisions of section 145 had not been made app....
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....nue should be dismissed. 12. We have considered the rival arguments made by both the sides, perused the orders of the AO and CIT(A) and the paper book filed on behalf of the assessee. We have also considered the various decisions cited before the CIT(A) who have reproduced the said decisions in the body of the appeal order. We find in the instant case the assessee is an individual engaged in the business of dealing in plastic moulded furnitures, job work and construction. From the discussion in the body of the assessment order, we find the main grievance of the AO is regarding the various defects in the accounts of the construction business. According to him although the assessee has executed some contract work during the first peri....