2015 (7) TMI 1403

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....s the judicial courts have allowed a lower rate upto maximum of 8% on Gross Receipts which is reasonable in the circumstances of the case. The rate applied should be based on valid basis such as part history of the case, nature of the business, past years profits. Reliance is placed on ITAT Chandigarh has recently held in the case of Sudarshan Kumar Shekhar vs. Assessee, Sukhvinder Singh vs. JCIT, Kurukshetra, Jaswant Singh, Contractor, ITAT, Amritsar Bench in the case of Mohan Singh Contractor. ii) The assessee may add or alter any of the grounds of appeal. 3. The assessee filed his return of income declaring income of Rs. 2,91,000/- on 29.9.2009 for the assessment year 2009-10. The return was processed u/s. 143(1) of ....

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....duce the books of account. Vide order dated entry dated 29.11.2011 assessee was asked to provide the detail which were not fully produced on the next date of hearing. AO observed that counsel of the asssesse produced some of the self made vouchers of Entertainment, Travelling and conveyance expenses but he was unable to produce the books of accounts and other relevant documents i.e. labour register, bills of material consumed and other detail of machinery rent account. In the absence of the above said document AO was unable to verify and the cost of material consumed. He observed that the claim of labour expenses and machinery rent was not genuine as the supporting documents were produced by the assessee, therefore, he rejected the books of....

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....st judgement assessment in a given situation is a matter of fact. He also submitted that in various judgment in which facts and circumstances of the case are similar to the present case, the Tribunal has applied a reasonable rate of 5% to 8%. 6. On the contrary, Ld. DR relied upon the orders of the authorities below. 7. I have heard both the parties and perused the records available with me, especially the orders of the revenue authorities. I find considerable cogency in the assessee's counsel submission that on similar facts the judicial courts have allowed a lower rate upto maximum of 8% on gross receipts which is reasonable in the circumstances of the case. The rate applied should be based on valid basis such as past history of the....