2018 (5) TMI 954

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ory of the 'appellant'. 2. BECAUSE, while doing so the Ld CIT(A) erred in law in overlooking and thereby not considering the binding decisions of the Hon'ble Allahabad High Court and Hon'ble ITAT, Agra Bench. 3. BECAUSE, while confirming the addition the Ld CIT(A) was highly unjustified in holding that if books are not maintained presumptive rate of 8% should have been applied by the AO ignoring the fact on records that appellant has maintained Books of Accounts which are audited and case do not fall under the provisions of section 44AD of the Act. 4. BECAUSE, upon overall consideration of the facts and in the circumstances of the case the authorities below was highly unjustified in treating the &#....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

..... Apropos Ground Nos. 1 to 3, the AO has made this addition, observing as the following:- "The assessee created as situation where by the assessment u/s 144 to the best of my judgment is the natural and logical corollary of the circumstances created by assessee himself. In view of the above facts and circumstances the books of accounts of assessee is rejected u/s 145(3) and applying the ratio decidendi of Hon 'ble Punjab & Haryana High Court in the case of 'CIT Vs. Prabhat Kumar', and apply the rate of 12% of net profit on the gross contract receipts to compute the taxable income. In this way addition of Rs. 1,01,18,006/- being 12% of the contract receipt from civil contract of Rs. 8,43,16,720/- added to the income of the asses....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... the decision of the Hon'ble Agra, ITAT in the case of Mahesh Chandra Contractor, vs. Income-tax Officer, in ITA No. 359/Agra/2011 in this case also the assessee was a civil contractor. Gross receipts from civil contract work was Rs. 1,90,96,014/-. The Assessing Officer noticed that the assessee has shown Net Profit rate of 0.6% excluding interest income. The assessee was asked to produce complete set of account books alongwith all bills and vouchers. The assessee produced only computerized cash book and ledger, and failed to produce relevant bills and vouchers of purchase and expenses. The Assessing Officer rejected the books of account of the assessee and estimated the profit applying 8% profit rate on total receipts of Rs. 1,90,96,01....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....0, the rate applied was 3.67%. In A.Y. 2008-09, the rate assessed was 4.63%. So, as per this past history of the assessee, the average rate comes to 4.16%, which is directed to be applied, as against that of 2.21% shown by the assessee. 7. Regarding Ground Nos. 4 and 6, the AO noticed capital addition of Rs. 35 lakh. He added Rs. 6 lakhs as unexplained introduction of capital, since though the assessee had stated this amount of Rs. 6 lakhs to be out of her past savings, she could not prove this contention. The ld. CIT(A) has confirmed the addition. 8. The ld. Counsel for the assessee states that the entire amount of Rs. 6 lakhs cannot be added and some credit of past savings needs to be given. It has been argued that alternatively, th....