2012 (2) TMI 639

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....he invoking of the provisions of Section 145(3) of the Act by rejecting the books of account without accepting the explanation offered by the appellant. 2. That on the facts and in the circumstances of the case, the ld. CIT(A) erred in confirming the addition of Rs. 7,16,800/- out of total addition of Rs. 56,43,419/- by estimating the net profit @ 6.5 % on account of suppressed net profit without considering the explanation offered by the appellant that in earlier years the net profit was accepted 26% and without accepting the facts and circumstances of the case. 3. That under the circumstances, charging of interest u/s 234D is not justified. 4. That under the circumstances, initiation of penalty proceedings u/s 2....

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....sub-contract also and after claiming expenses, net profit has been shown at Rs. 9,30,00,580/- which comes to 6.45 %. The AO has estimated net profit @ 8 % on work done by the appellant amounting to Rs. 60,70,32,574/- and 6 % on work done on sub-contract basis amounting to Rs. 83,47,73,285/- (gross) and has made an addition of Rs. 56,43,419/-. The books of account were rejected by the AO and the net profit was estimated in the present case. I have already held that the AO has rightly rejected the books of account while adjudicating the preceding ground. Now, comes the percentage of net profit which should be adopted which is reasonable and fair in the appellant's case. If the AO's estimation is analyzed in respect of the total con....