2012 (5) TMI 687

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....e is a civil contractor. Gross receipts from civil contract work was Rs. 1,90,96,014/-. The assessee also received interest income of Rs. 79,400/-. The assessee declared profit at Rs. 1,92,160/- inclusive of interest income of Rs. 79,400/-. The Assessing Officer noticed that the assessee has shown Net Profit rate of 0.6% excluding interest income. The assessee was asked to produce complete set of account books alongwith all bills and vouchers. The assessee produced only computerized cash book and ledger and failed to produce relevant bills and vouchers of purchase and expenses. The assessee did not maintain stock register. In the light of the facts, the Assessing Officer rejected the books of account of the assessee and estimated the profit....

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....the assessee. Admitted facts of the case are that the assessee is a civil contractor who did not maintain proper books of account. The assessee did not furnish relevant bills and vouchers of purchase and expenses before the Assessing Officer. In the light of the facts, we uphold the order of the Assessing Officer in rejecting the books of account. After rejecting the books of account, the issue to be decided is estimation of income. The Assessing Officer estimated the income on total contract receipts by applying 8% profit rate and interest income was separately added to the total income. The contention of the assessee was that there are several decisions of contract where 5% Net Profit rate has been applied for estimation of income from co....