TaxTMI 
TaxTMI 
2014 (1) TMI 1880
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....sment order u/s 143(3) without proper and valid service of notice u/s 143(3) within the prescribed time and therefore the assessment order so passed is bad in law and without jurisdiction. 2. That on the facts and in the circumstances of the case the Ld. CIT(A) has further grossly erred in confirming the provision of section 145(3) without any justification. The assessee has maintained regular and proper books of account duly audited by Chartered Accountant and expense are vouched and verifiable. 3. That on the facts and in the circumstances of the case, the Ld. CIT(A) has further grossly erred in confirming adhoc addition of Rs. 10 Lac without placing reliance on the past history of the case. The revenue/ITAT have estimated income on....
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.... to the assessee while the assessee is aggrieved on account of addition sustained by the CIT(A). 3 Facts of the case in brief are that the assessee is a Civil Contractor and completed the total contract work of Rs. 12,32,57,523/- on which net profit rate of 5.38% had been declared, which was subject to interest and remuneration to the partners as compared to Rs. 10,62,27,305/- contract receipts and net profit rate of Rs. 5.02% for the A.Y. 2008-09. The AO during the course of assessment proceedings, noticed the following defects in the books of accounts:- "a. The assessee had not been maintaining stock register. b. Party wise purchase details were not available. Pan-purchase details of Rs. 7,50,39,180/- could not be verified a....
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....Rs. 26,34,532/-, which determines the net profit rate of 13.7%. Accordingly the net profit was increased to Rs. 1,44,09,734/-. 4. Being aggrieved, the assessee carried the matter to the Ld. CIT(A), who upheld the action of the AO in invoking the provisions of section 145(3) of the I.T. Act 1961 (hereinafter referred to as "Act", in short) on the basis of the order dated 31/05/2011 of ITAT, Jaipur Bench in the case of M/s. Choudhary & Brothers in I.T.A.No. 1177/JP/2010 for the A.Y. 2007-08. The contention of the assessee before the Ld. CIT(A) was that in case the books of accounts are rejected by invoking the provisions of section 145(3) of the Act, then the relevant past history of the assessee would be one of the most reliable guideline ....
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....ief allowed out of addition made by the AO. 6. Learned counsel for the assessee reiterated the submissions made before the authorities below and the Ld. D.R. strongly supported the order of the AO and reiterated the observations made in the assessment order dated 09/12/2011. 7. We have considered the submissions of both the parties and carefully gone through the material available on the record. In the present case, it is an admitted fact that certain specific defects were pointed out by the AO which resulted into rejection of books of accounts by invoking the provisions of section 145(3) of the Act, the said action of the AO was upheld by the Ld. CIT(A). Before us also, nothing new is brought on record, therefore we confirm the view ta....