2016 (11) TMI 1415

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....IT O R D E R PER N.R.S. GANESAN, JUDICIAL MEMBER: This appeal of the assessee is directed against the order of CIT(A) -8, Chennai dated 29.02.2016 and pertains to assessment year 2012-13. 2. No one appeared for the assessee inspite of service of notice. The Registry has placed on record the postal acknowledgement as a proof of service of notice. Therefore, we heard the learned represen....

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....e assessee. The assessing officer has also found that the assessee has returned less than 5% of the gross receipt as profit. If we consider the interest paid by the assessee and the depreciation claimed, the profit declared by the assessee would go below 5%. Therefore, the assessing officer estimated the profit at 5% and found that there was a deficiency of Rs. 21.39 crores. Accordingly, the asses....

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....lable on record. A bare reading of the assessment order shows that the assessing officer estimated the profit ignoring the books of account at the rate of 5% on the ground that the income disclosed for some of the projects are less than 5%. The assessing officer has also observed in the assessment order that the income earned by the assessee in some of the projects are reasonable in relating to th....

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...., that alone cannot be a reason for the assessing officer to estimate the profit uniformly at 5% for all the projects. It is for the assessing officer to examine the books of account and find out why he could not accept profit of the assessee on the basis of books of account maintained. Since such an exercise was not done and the books of account of the assessee was not rejected, this Tribunal is ....