TaxTMI 
TaxTMI 
2017 (5) TMI 1566
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....e circumstances of the case, the CIT(A) erred in deleting the addition made by the AO and also in the remand report, AO has mentioned that assessee has not furnished any papers or documents like bills, vouchers, books of a/cs as asked for in support of his claim. 2. That on the facts and in the circumstances of the case, the CIT(A) erred in accepting the papers and documents produced before him when the same books of a/c papers, documents have not been produced before the AO during the course of scrutiny proceedings. After scrutiny assessment, assessee was again given opportunity to produce the same but has not produced before AO while sending remand report." 3. The brief facts of the case are that the assessee is engaged in the....
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....levance to its business activities, the Assessing Officer disallowed 50% of the expenses of Rs. 2,28,350/- and added the same to the income of the assessee. 7. Similarly, the assessee has debited an amount of Rs. 89,87,553/- under the head "carriage for material & labour". As there was no bifurcation, the Assessing Officer observed that it is difficult to ascertain as to the cost of material purchase for the contract works and subsequent transportation to the site alongwith the labourers. As the assessee failed to comply with the provisions of Income Tax Act, 1961 it has attracted section 40(a)(ia) of the Act, the entire amount of Rs. 89,87,553/- was disallowed u/s.40(a)(ia) of the Act. 8. Before the CIT(A), the assessee showed his in....
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....ial expenses towards labour payment of Rs. 3,55,65,905/- materials consumed of Rs. 3,99,24,445/-, other expenses of Rs. 4,56,699/- and carriage for materials and labour of Rs. 89,87,563/- have been claimed for which no bills/vouchers and other relevant details were at all produced in the course of assessment proceedings as well as in the course of appellate proceedings. This being so, possibility of claiming inflated expenses under these heads cannot be ruled out. This has to be further seen in the context of the gross receipts from contract works of Rs. 10,22,93,445/- against which net income/profit of Rs. 54,44,553/- only has been shown which works out to a meagre 5.32%. Moreover, the appellant himself has brought to my notice in support ....
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....ra B para C and para D of the assessment order and assess the appellant's total income by including 10% of the gross contract receipts of Rs. 10,22,93,445/- as net income from contract business before depreciation. The appellant's grounds are partly allowed." 10. In the cross objection, the grievance of the assessee is that the CIT(A) is not justified in estimating the profit @ 10% of the gross receipts from contract work in view of the fact that as per provisions of section 44AD, even in no account case, the profit is being determined @ 8%. 11. We have heard the rival submissions, perused the orders of lower authorities and materials available on record. In the instant case, the Assessing Officer completed the assessment u/s.144 of t....