TaxTMI 
TaxTMI 
2011 (1) TMI 1447
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....the assessee are as under:- "1. That on facts and in circumstances of the case, the learned CIT(Appeals) Rohtak had erred in enhancing the net profit ratio to 12% of the Gross Receipts against 5% of Gross Receipts considered by AO thereby making a further addition of Rs. 3382487 to the assessed income of Rs. 21,94,133. 2. That on facts and in circumstances of the case, the learned CIT(Appeals), Rohtak had erred in making a further addition of Rs. 3382,487 instead of deleting the addition of Rs. 1012,509 made by A.O. to the returned income of Rs. 1280,189. 3. That on facts and in circumstances of the case, the learned CIT(Appeals) Rohtak had not appreciating the facts that part books of accounts were produced before AO." 3.....
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....the assessee. 5. In the course of assessment proceedings, it was noticed by the AO that the net profit shown by the assessee comes to 2.79% as compared to 1.81% in the immediately preceding year. During the course of assessment proceedings, the assessee was asked to produce complete books of account with bills and vouchers. However, the assessee had only produced part of the books with some bills of iron and steel, cement and building material and bricks. No bills and vouchers were produced for the following major expenses :- (i) Labour charges. (ii) Fabrication charges. (iii) Construction work expenses. (iv) Miscellaneous expenses. (v) Job work charges. 6. The assessee was provided a final opportunity vide order sheet ....
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....has upheld the application of net profit at 12% on contract receipts excluding the cost of material supplied by the department. The learned CIT(A) also held that Hon'ble ITAT Chandigarh in ITA No.323/Chandi/2005 dated 25.5.2007 in AY 2001-02 had applied 12% of net profit rate of contract receipts in the case of M/s Parbhat Kumar. The CIT(A), therefore, enhanced the net profit rate to 12% on total contract receipts and passed the order. 8. In the course of hearing of this appeal, the learned counsel for the assessee has not been able to explain as to why all books of account with complete bills and vouchers were not produced before the AO. However, he contended that the same were sought to be produced before the CIT(A) as would be clear f....
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....the learned CIT(A). The total turnover in FY 200304 was Rs. 88,43,638/- which has been increased to Rs. 2,64,29,168/- in the next FY 2004-05 and to Rs. 4,58,53,970/- in the current FY 2005-06. It is thus seen that the turnover in the current year has been increased from Rs. 88,43,638/- in FY 2003-04 to Rs. 4,58,53,970/- which is about five times. It is also seen by us that in the FY 2004-05 relevant to the AY 2005-06, the AO has himself applied the rate of profit at 2.15% against total turnover of Rs. 2,64,29,168/-. 11. Further, the CIT(A) has applied the decision of Hon'ble High Court of Punjab & Haryana in the case of M/s Parbhat Kumar (supra) while applying the rate of profit at 12%. We have gone th....