2021 (8) TMI 937

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....issue is that: "The Ld. CIT (A) has erred in estimating the income of the assessee @ 8% on the sub-contract turnover of Rs. 2,93,00,000/- received by the assessee as against the addition made by the ld. AO of Rs. 2,75,00,000/- being the entire sub-contract receipt not found to be genuine and Rs. 18,00,000/- being the amount received from three parties which remained unexplained." 3. The brief facts of the case are that the assessee is an individual undertaking Civil contracts filed his return of income for the relevant AY on 3/9/2014 admitting total income of Rs. 13,75,000/-. Thereafter, the case was taken up for scrutiny under CASS and the assessment was completed vide order dated 9/3/2016 wherein the ld. AO made addition Rs. 2....

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....,93,00,000/- [Rs. 2,75,00,000 + Rs. 18,00,000] by observing as under:- "4.2. I have considered the assessment order, submissions of the assessee, the documents placed before me and I have also perused the assessment record. The following are the documents available on record, which were filed by the assessee during the assessment proceedings: (i) Copy of Form 26AS (ii) Copy of ITR Acknowledgement along with computation of income. (iii) Copy of statement of bank account of the assessee with Axis Bank, HSR layout for the period 01.04.2012 to 31.03.2013. (iv) A note dt 08.02.2015 regarding the nature of business and basis of Return of Income fled. (v) Copy of sub-contract agreement with Mis....

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....ing Officers were available (through PAN) which were not pursued for making enquiries by the Assessing Officer. The Assessing Officer stating that the letters sent to them were returned unserved, no further enquiries were conducted. 4.2.3. On consideration of the factual position as brought out by the Assessing Officer and the documents placed on record by the assessee during the assessment proceedings, it appears that the documents filed by the assessee cannot be disregarded in toto. The finding of the AO that the payers made payments to claim bogus expenditure is without sufficient basis/enquiry. In view of the above, it is fit case for rejection of books of account/book results rather than case for treating entire receipts as in....