2014 (3) TMI 1121

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....essment year 2009-10. Issues being common for the sake of convenience, the appeals are clubbed together and discussed of in this consolidated order. ITA No.67/Vizag/2012: 2. Briefly the facts are the assessee a partnership firm is carrying on business of executing civil contract work of laying of roads. For the impugned assessment year the assessee filed its return of income on 23.10.2007 declaring total income of Rs. 90,22,730/-. A survey was conducted in case of the assessee on 13.3.2008. Consequent upon survey the assessee filed a revised return of income of 2.4.2008 declaring total income of Rs. 1,41,00,540/-. The scrutiny assessment in case of the assessee was completed u/s 143(3) of the Act vide order dated 10.11.2009 determinin....

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....High Court and Tribunals, the action of the Assessing Officer in estimation of assessee's profit @ 9% on the gross bills of Rs. 19,59,06,133/- is without any basis and the AO has not called for any material in support of his decision. Thus, the assessment order passed by the Assessing Officer u/s 143(3) of the I.T. Act, 1961 dated 10.11.2009 is cancelled for the reasons mentioned above with a direction to redo the same after considering the judgement of the Hon'ble High Court in the case of M/s. Indwell Constructions Vs. CIT cited supra and to estimate the income of the assessee as the AO thinks fit, after giving the assessee a reasonable opportunity of being heard." 3. We have heard the parties and perused the materials on record as wel....

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....that it is a settled position of law that where the assessing officer has applied his mind to make certain estimations, his order cannot be revised by the CIT only for the simple reason that estimation made by the A.O. is on lower side. 10. The Ld. D.R. on the other hand has placed a heavy reliance upon the order of the CIT. 11. Having carefully examined the order of the CIT as well as the A.O. in the light of rival submissions, we are of the view that assessing officer has examined the books of accounts as well as bills and vouchers and after noticing certain defects therein, he rejected the books of accounts and estimated the income at 9% on the gross contractual receipts subject to deduction of interest and remuneration....

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....eeding, the assessing officer noticed that the assessee has disclosed gross contract receipt of Rs. 41,69,97,536/-. The assessing officer called upon the assessee to produce bills and vouchers for the expenses debited to profit and loss account. The assessing officer after verifying the bills and vouchers noted that the expenses debited towards material purchases like dust, metal, gravel etc. labour charges and sand are through self-made vouchers only. Since the expenditure made through self made vouchers are not fully verifiable the assessing officer rejected the books of accounts and proceeded to estimate the profit of the assessee. The assessing officer relying upon an order of the ITAT in case of M/s. KNR Constructions estimated the pro....