2018 (1) TMI 1721

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ance made by the AO on account of expenses incurred on purchase of materials, labour charges, transportation charges, etc thereby giving relief of Rs. 55,53,733/-." 2. Whether in law and on facts and circumstances of the case, the CI(A) has erred in deleting the addition of Rs. 18,95,000/- made by the AO on account of unexplained cash credit u/s.68 of the I.T.Act, 1961 specially when the ld CIT(A) has dismissed the ground related in making of assessment u/s. 144 of the I.T.Act, 1961." 3. Briefly stated the relevant facts are that the assessee derives income from execution of civil contract works. The assessee filed return of income on 18.3.2011 showing total income at Rs. 13,72,490/-. The case was selected for scrutiny. Notices ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....g the decision of the Raipur Bench of the Tribunal in the case of C.M Makhija n ITA No. 568/Nag/2008, wherein, the NP was estimated by the Assessing Officer at 5% while it was reduced by the CIT(A) to 4.3% and the Tribunal directed to adopt net profit at 3.5% and directed the Assessing Officer to apply net profit at 3.5% of the total receipts after considering deductions including depreciation and add the difference to the returned income and partly allowed the appeal of the assessee. 6. Ld D.R. submitted that the Assessing Officer has made estimation of expenditure whereas the CIT(A) has erred in restricting the addition in respect of addition on percentage basis. 7. We have heard the submissions of ld D.R., perused the orders of low....