2012 (1) TMI 415

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....appeal: "2. On facts and in the circumstances of the case Lnd. ACIT and CIT(A) were not justified in applying the provision of section 145(3) of the I.T. Act. 3. On facts and in the circumstances of the case Lnd. CIT(A) was not justified in confirming the N.P. Rate of 12% on the net contract receipt and the application of flat N.P.Rate of 12% is highly excessive without any basis, material and data on the record. 3. Despite service of notice none appeared on behalf of the assessee. We proceed to decide the appeal after hearing learned D.R. for the Revenue in view of the smallness of the issue. The issue raised by the assessee is against rejection of books of account under the provisions of section 145 (3) of the Act and....

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....ssee was that it was carrying on the business of executing the contract of laying mattled road as civil contractor. The assessee claimed that its return of income was backed by tax audit report and trading, Profit & Loss Account and balance sheet were annexed to the return of income. The assessee further claimed that books of account were produced before the ACIT which were rejected as the assessee had not maintained stock register and muster roll and also not produced proper vouchers in respect of expenses debited to Profit & Loss Account. The assessee claimed that there was a theft from his car in which muster roll, bank statement, etc. were stolen and copy of FIR was filed before the ACIT. Further it was pointed out that the assessee had....

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....adoption of net profit rate to determine the income in the hands of the assessee, where the books of account had been rejected, arose before the Tribunal in Shri Sukhwinder Singh Vs. ITO (supra). The Tribunal in Sukhwinder Singh Vs. JCIT, Kurukshetra in  ITA No.1461/Chd/2010 vide dated 24.11.2011 held as under : "10. The second issue to be addressed in the case is the application of NP ratio. The Tribunal (supra) in assessee's own case relating to assessment year 2005-06 had directed the application of net profit rate of 1.08% to the gross receipts of Rs.3.22 crores in comparison to net profit rate of 6.5% to the total receipts applied by the Assessing Officer. The CIT (A) during the year under consideration had rejected the c....