TaxTMI 
TaxTMI 
2013 (4) TMI 833
X X X X Extracts X X X X
X X X X Extracts X X X X
....he deduction of trade tax and royalty etc. and allowing relief of Rs. 21,52,748/- ignoring the fact that the assessee itself have agreed for the application of net profit at the rate of 8% on gross receipt without any deduction therefrom. (ii). Whether on the facts and circumstances of the case Ld. CIT(A) is justified in allowing deduction of interest ignoring the fact that the assessee itself have agreed for the application of 8% net profit on the gross receipt and Ld. CIT(A) confirmed the application of section 145(3) of the IT Act. (iii). Whether on the facts and circumstances of the case Ld. CIT(A) is justified in deleting the addition of Rs. 527221/- made on account of interest income not shown in the income of the assessee and no sa....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ess income at Rs. 98,50,001/-. The Assessing Officer found that the assessee has disclosed interest income at Rs. 3,37,494/- while as per AIR details, interest, on which TDS was deducted was Rs. 8,64,715/-. Therefore, the assessee was found to have suppressed the interest income of Rs. 5,27,221/-. The addition was accordingly made. The assessee challenged both the additions before the ld. CIT(A). In the grounds raised before the ld. CIT(A), the assessee challenged total addition of Rs. 37,49,108/- under the two heads, i.e., 32,21,887/- as extra profit and Rs. 5,27,221/- under the interest on FDR. With regard to extra profit addition, the assessee explained that it is a class-I civil contractor engaged in business of highway road constructio....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ition is liable to be deleted on this ground itself. Further, FDRs are needed for security for obtaining contracts. The FDRs are prepared out of overdraft. The interest on the FDRs is, therefore, adjustable against the interest paid on borrowings / overdrafts. The certificates obtained from the banks were filed to clarify the position. It was explained that the interest paid on borrowings exceeds this amount and thus the treatment of interest received separately as income from other sources is unjustified. The assessee has given note on the accounts attached with the balance sheet to clarify the above position. The ld. CIT(A) accepted the claim of assessee that the Assessing Officer has made this addition without giving any opportunity of ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... submissions of both the parties and the material available on record and do not find any justification to interfere with the order of the ld. CIT(A) in deleting the additions. The assessee has not produced relevant record before the Assessing Officer. Therefore, book results were correctly rejected. The assessee has shown progressive turnover and profit in the assessment year under appeal as compared to the earlier years. Therefore, the Assessing Officer has applied the profit rate of 8%. The assessee claimed deduction before the ld. CIT(A) by relying upon the decision in the case of Brij Bhushan Lal Pradumn Kumar (supra) and Gupta Construction Co. (supra). The Assessing Officer has already allowed deduction on account of interest and sala....