2020 (1) TMI 402

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....and law by confirming the net profit rate of 8% without any logical basis whereas the assessee has produced complete books of account and the AO could not find any material defect in the books of account. 3. Succinct facts of the case are that the assessee is a Proprietor of M/s Unique Constructions and engaged in the business as a contractor. During the course of assessment proceedings, the AO has examined the books of account and found that the assessee has shown gross contract receipt of Rs. 3,15,21,611/- for the assessment year under consideration against which the net profit of Rs. 6,87,464/- was shown. The assessee has debited expenditure of Rs. 2,73,45,987/- under the head purchased of material of Rs. 2,53,680/- under the head lab....

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....ipt of Rs. 3,15,21,611/- which worked out at Rs. Rs. 3,15,21,61/- and the assessed the total income of Rs. Rs. 3,15,21,61/- including the income returned at Rs. 6,87,464/-. 4. Being aggrieved the assessee carried the matter before the CIT(Appeal), wherein it was submitted that the AO rejected the books of account without giving any reason to reject the same and considering that facts in the original return. It was submitted that Allahabad High Court in the case of Dhampur Sugar Mills Ltd. v. CIT [1973] 90 ITR 236 (All) and ITAT Mumbai in the case of IVF Holdings (P) Ltd. Mumbai v. Department of Income Tax has observed that the revised return have been filed as per the terms of the provisions of section 139(5), then the original return sh....

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....what should be the net of profit from the work of a civil contract. Relying on the judgment of Punjab & Haryana High Court in the case of Vidya Sagar Saini. The CIT has reduced 8% allowing the appeal particularly in favour of the assessee. 5. Being aggrieved the assessee has filed this appeal before us, however none was present from the side of the assessee, therefore, we are deciding this appeal on the basis of material available on record. 6. Per contra the learned Sr. DR relied on the CIT(Appeal). 7. We have heard the rival submissions and perused the material available on record. We find that the AO has rejected the books of account on the basis of fact that of original return, when the expenditure shown by the assessee has bee....