TaxTMI 
TaxTMI 
2016 (5) TMI 1365
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....dated 30.12.2011 for assessment year 2009-10. Revenue raised the following effective grounds which reproduced below:- "1. Whether on the facts and circumstances of the case, Ld. CIT(A) erred in directing that profit be estimated @ 8% (eight percent) of Gross Receipts particularly in view of the facts that: i) The books of A/c were not rejected by the AO. ii) That external verification proves that purchase were inflated & hence there is no scope of estimation. iii) The turnover of the assessee is much more than 40 lakhs as mandated in 44AD." Shri Pramod Kumar Himmat Singhka, Ld. Authorized Representative appearing on behalf of assessee and Shri Rajat Subhra Biswas, Ld. Department Representative appearin....
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....ha 11 Bina Carrying Centre 27 Manavendra Sarkar 12 Balak Brahmachari Suppliers 28 Parimal Chandr Saha 13 Gauranga Trading Co. 29 Sudip Kumar Bose 14 Arvee Enterprise 30 Shillong Ispat Rolling Mills Ltd 15 General Supply Agency 31 Tripura Small Enterprise 16 Tirupati Sales Corporation 32 Vivekananda Trade Centre During the assessment proceedings, Assessing Officer issued notices u/s. 133(6) of the Act to all the aforesaid parties for verifying the transactions with assessee. The AO found that there was lot of mismatched in the figure of purchase shown by assessee and the reply receipt fr....
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.... expenses before the Assessing Officer and also considering the facts that there are many defects in the books of account as pointed out by the Assessing Officer and purchases could not be verified but without material the appellant could not have executed Civil Contract Works and further considering the fact that the net profit of the appellant's contract business for the year was only 3.8%. I am of the view that estimating the profit from the Civil Contract Business of the appellant @ 8% of the gross contract receipts would be fair and reasonable and the appellant has also accepted the same to be fair, reasonable and appropriate. In these facts and circumstances after rejecting the books of account due to defects the income of the appella....
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....ed more than 8%. The sufficient time was not given by the AO to the assessee for making the reply to the queries raised. The assessee received the notice for hearing on dated 26th November for the appearance on 27th November. And finally the AO passed the order on dated 30.12.2011. The ld. AR also submitted that Government of India also provides the abatement of 67% for the material component for charging the service tax in the case of civil contracts. The assessee agreed for the addition of income @ 8 % of the gross turnover to buy the peace of mind. The ld. AR also drew our attention on page 1 of the paper book where the details of the profit declared by the assessee in the earlier years and subsequent years were furnished in terms of per....
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.... 2. In the case of Shri Om Prakash Tripathi Vs ACIT (Contractor) Circle 2(1), Farrukhabad. ITA No. 330/Agr/2005 it has been held that in the AY 2001-02, the assessee was engaged in the business of civil construction. Net profit rate shown by the assessee 5.32%. the same being accepted by the AO CIT(A), Agra. Rejected the books of account by applying provisions of section 145 and estimated the net profit at 7% of the gross receipts. Tribunal confirmed the order of the CIT(A) on the issue with conclusion that the rate applied has been rightly based on the net profit rate on different years. 3. In the case of Metropolitan Engg. Co. Opt. Society Ltd. vs. ACIT ITA No.s 2172 & 2172/Kol/2010 it has been held that in the AY 2001-02....
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....% in so far sub-contracting is concerned. Honble lordship of Tribunal, directed to estimate the income @ 6% from the contract business sand so far as profit on sub-contract business and road roller hiring is concerned uphold the estimation as adopted by the Commissioner of Income Tax (Appeals) to meet the end of justice. 5. In the case of the ACIT Gandhidham Circle vs. M/s Ishwar Construction Co. Gandhidham, ITA No. 1140/RJT/2009 it has been held that in the AY 2005-06, the assessee was engaged in the business of civil construction. Assessee fails to provide proper evidence in the shape of bills, vouchers, unable to verify purchases before the AO and AO made addition for unexplained purchase, sub-contract expenses and under valuati....