2010 (12) TMI 1327

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....ssessment year 2005-06, the assessee declared income of Rs. 57,080/- on a total turnover of Rs. 1,02,39,180/-. The return of income was accompanied with audited report in Form No. 3CB and Form No.3CD. The A.O. completed the assessment by resorting to provisions of section 144 of Income-tax Act, 1961 (hereinafter called as "the Act") by applying net profit of 10% on the gross receipts. Aggrieved, the assessee preferred first appeal before CIT(Appeals), who in turn, reduced the net profit to 2.5% of the gross receipts. Now the Revenue is aggrieved and has raised the following grounds:- 2. The CIT(Appeals) failed to notice that assessment has been completed by the A.O. u/s 144 of the Income-tax Act, 1961. The findings of the CIT(Appeals) th....

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....d circumstances of the case, when u/s 44AD, minimum net profit of 8% has been presumed by the Legislature in cases where gross receipt from civil construction does not exceed Rs. 40 lakhs, is erroneous and based on surmises and conjectures. 6. The CIT(Appeals) erred in allowing the assessee to take benefit of provisions of sub-section 6 of section 44AD when assessee failed to produce books of accounts during the assessment proceedings. The onus is cast on the assessee to prove with the audited books of accounts and other necessary details that he earned net profit which is less than 8% of the gross receipt. The CIT(Appeals) ought to have remanded back the matter, which he is generally doing in other cases, before coming to the conclusion....