2013 (4) TMI 819

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.... firm filed its return of income declaring total income of Rs. 20,17,220/- on 30.09.2009. The assessee also enclosed an Audit Report obtained for the financial year 2007-08 relevant to assessment year 2008-09. The perusal of this Audit Report showed that the assessee has debited various expenses to the works account. The details of these expenses are as under:   "S.No. Nature of expense Amount 1. Mitti Expenses Rs.19,44,000/- 2. Tractor Trolley Expenses Rs.18,68,096/- 3. Road Roller Expenses Rs.16,62,155/- 4. Water Expenses Rs.14,75,200/-  5. Paver Machine Expenses Rs. 5,32,000/- 6. JCV Machine Expenses Rs. 4,80,451/-" 3. To examine the genuineness of the above e....

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....was on the assessee to produce the persons for examination to whom the payments were made and the assessee has shown its inability to produce them for examination. Whereas it was necessary to do so to verify the genuineness of the payments made to them. iv) The information received from the District Transport Officer, Sangrur clearly reveals that three of the five vehicle (i.e. one three wheeler & two Scooters) are actually not capable for being used for transportation of material used in the contract work and astonishingly the assessee has claimed to have transported the material at the worksite through these vehicles. It proves that the assessee has debited bogus expenses and mislead the revenue by submitting that there is clerical mis....

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..... The worthy Commissioner of Income Tax (Appeals) has erred by applying the net rate @ 8% against the gross payment of Rs. 9,68,46,622.00 ignoring the fact & nature of case.   3. The worthy Commissioner of Income Tax (Appeals) has erred by ignoring the past history of the case & assessment order passed U/S 143(3) by JCIT Sangrur for immediate Preceding Assessment Year 2007-08 despite of fact that there is no change in nature of business & circumstances of case. 4. That the worthy Commissioner Of Income Tax (Appeal) Patiala has erred by not allowing depreciation amounting to Rs. 25,24,388/- in the light of jurisdictional High Court judgment in case of CIT Vs. Chopra Bros. 252 ITR 412 and Bhullar Construction, 286 ITR 686. 5. Th....

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.... FUTURE             2009-10 149541203 6404078 4.28 307265 6711343 4.49 8. It is a settled position of law that even after rejection of books of account, the past history of the assessee is the best guide to ascertain and determine the trading results of a particular year. In this regard, the direct decision of Hon'ble jurisdictional High Court rendered in the case of CIT V Parveen Kumar Mittal, judgement dated 13.10.2011 is directly on the point. Thus, even after rejection of the books of account, the past history of the assessee has to be applied and adopted for the purpose. As is clear from the above extracted chart that even after allowing depreciation, the NP....