2002 (8) TMI 853

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....iving in opportunity to the assessee and not confronting him with those cases disclosing higher net profit rate as referred in the order, (iii) sustaining the addition of Rs. 523905 to the disclose net profits, (iv) sustaining the levy of interest under section 234-B, and (v) setting-aside the grievance of the assessee for not giving correct credit of TDS as claimed by it. (2) The ld. A.R. does not wish to press the last ground no (v ) i.e. ground No. 10 in the memo of appeal, hence the same is dismissed as withdrawn. (3) The facts in brief are that assessee-firm is a civil contractors which had filed return of income at Rs. 1184179 and assessment was made (sic) under section 143(3) of the IT Act 1961. the Assessing Officer i....

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.... on the record and have gone through the order impugned as well as the judgments relied upon by the party. The ld. A.R. submits that all the accounts of the assessee have been maintained regularly in detailed manner which have been subjected to statutory audit and each and every transaction, whether of receipts or payments are duly vouched. He draws our attention to the contents of page nos. 53 to 67 of the paper book in support. He also invites our attention to a comparative chart placed at page no. 1.9 of the paper book showing the history of the case from the assessment year 1985-86. From it, it is evident that the net profit of assessee before depreciation ranged from 7.5% to 9.48% which has been accepted either by the ld. Assessing Off....

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....urther that the gross profit ratio had also increased to 19.43% as against 18.62% in the preceding year relevant to assessment year 1994-95. The ld. A.R. refers letter dated 11-12-1997 placed at page nos. 1.11 to 1.21 of the paper book specially the page no 1.16 and submits that in this letter the assessee had explained the facts of the case, issue of expenditure to the Assessing Officer with this submission that assessee had maintained detailed record of expenses incurred supported by payment vouchers, bills receipts containing full particulars and nature of expenses, muster roll was maintained for payment made to labours stamped payee receipts had been obtained for day to day record for work done with measurement, payment of expenditure o....

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....mbikaram 37 ITR 286 (SC), (ii) Ajanta Construction (P.) Ltd. v. ACIT [2001] 116 Taxman 220 (JP), (iii) ITO v. M/s. Jaishree Trading Corporation [1978] Taxation 50(6) - 142 (Bom.), (iv) ITO v. Khosla Construction Co. [2001] 20 DTC 584 (ASR), (v) CIT v. Jain Construction Co. [2000] 245 ITR 527 (Raj.), (vi) Kishanchand Harishchand v. ITO [2001] 21 DTC 522 (JP), (vii) ACIT v. Mahesh T. Patodia [2001] 79 ITD 40 (Pune), (viii) Lake Palace Hotel and Motels (P.) Ltd. v. DCIT [2001] 29 ITC 491/495 (Jodh.), and (ix) Scientific Wood Packers v. ACIT [2001] 165 Taxation 52 (Trib.). The ld. D.R. on the contrary banks upon the orders of lower authorities. (4.1) We find force in the submissions of the ld. A.R. in support of th....

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....at correctness of account books could not be doubted on suspicion, conjectures, or surmises. This bench of the Tribunal in the case of assessee for the assessment year 1985-86 and 1987-88 and for the assessment year 1993-94 has also not justified these stereo type basis of the assessing authority for rejection of book results under section 145(2) of the Act. The Bombay bench of the Tribunal in the case of ITO v. Jaishree Trading Corporation (supra) relied upon by the ld. A.R. has also held that it is not possible for the assessee to churn out a uniform G.P. rate from year to year irrespective of the varying conditions. Business is not mathematics and it would only be natural to expect variations in the trading conditions from time to time. ....