TaxTMI 
TaxTMI 
2013 (8) TMI 1102
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....he facts & circumstances of the case. 2. That without prejudice to the above grounds, the learned CIT(Appeals-I) has erred in estimating the income of the assessee @ 5% of gross receipts without properly appreciating the facts & circumstances of the case. 3. The learned CIT(Appeals-I) has erred in confirming an addition of ₹ 1,28,651/- and ₹ 1,47,729/- respectively to the income of assessee being interest credited to P&L A/C, without properly appreciating the facts & circumstances of the case. 3. That the appellant craves the leave to add, modify, amend or delete any of the grounds of appeal at the time of hearing and all the grounds are without prejudice to each other." 3. The brief facts of the case are that the assesse....
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....orting evidence could be produced to establish the genuineness of the entire expenses. The AO has also found that the NP rate shown by the assessee(appellant) is quite at lower side being 3.01% and, therefore, he rejected the books of account and estimated the profit of the assessee(appellant) at 6%. After going through the entire case records and considering the facts and circumstances of the case, I do not find any error in the decision of the AO with regard to the rejection of the books of account u/s.145(3) because due to non verifiable nature of the labour expenses shown by the assessee, correctness of the books of account maintained by the assessee(appellant) are audited on the basis of self made vouchers without any supporting eviden....
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....26,851/- on the credit side of profit & loss account. However, the AO has not computed the income of the assessee(appellant) from the net profit shown in the profit & loss account. Instead of starting the computation of income from the net profit shown in the profit & loss account, the AO has directly computed the income of the assessee(appellant) from the contract work by taking the profit rate of 6% on gross receipt of ₹ 4,16,02,496/- and, therefore, he has further added other income shown by the assessee(appellant) in the profit & loss account which includes interest income of ₹ 14,729/- and ₹ 1,26,851/-. Therefore, I do not find that the AO has committed any error in adding these two interest income separately in the p....
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....assessee's paper book as under:- (Page No.103 assessee's paper book) "Working results for both years for your ready reference is as follows: F.Y.06-07 F.Y.07-08 (Rs.in lacs) Sales 146.03 416.02 NP 4.38 12.76 % NP 3.00% 3.06%" 7. We noticed that the assessee has shown comparatively reasonable net profit rate 3.06% as against 3% for the last year. The Hon'ble Rajasthan High Court in the case of CIT Vs. Gotan Lime Khanij Udhyog, [2002] 256 ITR 243 wherein it has been held that Section 145 of the I.T. Act only provides the basis on which computation of income is to be made for the purpose of determining the amount of tax payable by the assessee. The provision by itself does not deal with addition or deletion of the income. The as....