2018 (1) TMI 1720

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....essee is a partner firm deriving income from civil contract business. The Assessing officer noticed that the assessee has shown net profit before interest and remuneration at 2.39% on the turnover of Rs. 19.22 crores, whereas on comparable cases, the net profit was much higher. He observed that the assessee has failed to produce books of account but the books have been audited, therefore, they are not rejected and no net profit is estimated in view of comparable cases. In absence of bills and vouchers, the Assessing officer estimated adhoc disallowance ranging from 5 to 10% of the total claim and determined the addition at Rs. 53,95,151/-. 4. On appeal, the assessee submitted that the assessee has maintained complete day to day books of ac....

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....fficer. 6. Being aggrieved, the revenue is in appeal before us. 7. Ld D.R. submitted that the Assessing Officer has referred comparable cases and made addition and the CIT(A) is not justified in restricting the same to Rs. 6,77,080/-. 8. We have heard ld D.R. and perused the materials available on record. Before us, ld D.R. could not point out any mistake in the order of the CIT(A). We find that the books of account of the assessee are audited and the assessee has furnished the tax audit report to which no adverse inference was drawn by the Assessing officer. We find that the CIT(A) has dealt on the issue and relied on various judicial pronouncement on this matter and estimated the net profit @ 2.75% of gross contract receipts and sustai....