2012 (9) TMI 1036

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....come of Rs. 78,200/-. The AO asked the assessee to produce the books of account alongwith supporting bills and vouchers for purchases and other expenses claimed. However, according to the AO, the books of accounts were produced, but supporting bills and vouchers which were produced were only self made. According to the AO, the assessee failed to produce all the relevant bills / vouchers for purchases and expenses as claimed in the profit and loss account. The AO, therefore, proposed as to why the books of accounts be not rejected by invoking the provisions of section 145(3) of the IT Act. The assessee did not raise any objection to the proposition of the AO. Accordingly, the books were rejected. The AO applied profit rate of 8% and estimate....

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....added separately. The assessee in the written submissions stated that in the assessment year under appeal it has shown net profit rate of 5.03% and in preceding assessment year 2006-07, the appeal of the assessee was considered by the ITAT, Agra Bench in ITA No. 359/Agra/2011 and net profit rate of 8% has been confirmed, but separate addition of interest has been deleted. Copy of order dated 25.05.2012 is filed on record. The assessee, therefore, prayed in the written submissions that relief may be granted accordingly and since the Tribunal order was passed exparte, therefore, net profit rate is still excessive. On the other hand, the ld. DR relied upon the orders of the authorities below. 4. On consideration of the rival submissions abo....

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....ssessee in the written submission before the CIT(A) that the interest income of Rs. 79,400/- is business income of the assessee, therefore, separate addition is not warranted. The estimation of contract receipt includes this interest income also. After considering the totality of the facts of the case, past history of the assessee and statutory presumptive tax scheme of the Act, section 44AD wherein for such cases 8% rate of profit on total turnover has been prescribed to determine the business income. We are aware that though the said section 44AD does not directly apply to the case under consideration as the said section 44AD is applicable in the case of the assessee where turnover is not exceeding the prescribed limit. In the case under ....