TaxTMI 
TaxTMI 
2026 (6) TMI 231
X X X X Extracts X X X X
X X X X Extracts X X X X
....re, Delhi (hereinafter referred to as 'ld. AO'). 2. At the outset, I find there is delay in filing of appeal by the assessee before this Tribunal by 355 days. Considering the reasons adduced in the condonation petition, I hold that assessee was prevented from sufficient cause in not filing the appeal in time. In the interest of substantial justice, I am inclined to condone the delay and admit the appeal of the assessee for adjudication. 3. No arguments were advanced in respect of Ground Nos. 1, 2 and 8 raised by the assessee. Hence the same are hereby dismissed as not pressed. 4. The Ground Nos. 3 and 4 raised by the assessee are challenging the confirmation of addition made u/s 69A r.w.s. 115BBE of the Act on account of cash depos....
X X X X Extracts X X X X
X X X X Extracts X X X X
....plained u/s 69A r.w.s. 115BBE of the Act. In respect of contract receipts, the ld AO found that in Form 26AS the total contract receipts reflected was Rs. 3,25,58,189/-. The ld AO applied 8% of such contract receipts as profit as per the Section 44AD of the Act and added a sum of Rs. 26,04,660/- as business income and completed the assessment. This action of the ld AO was upheld by the ld CIT(A). 6. It is not in dispute that assessee is engaged in construction business on sub-contract business for various larger entities. It is not in dispute that no return of income was filed by the assessee either originally or in response to notice u/s 148 of the Act. The ld AR before me submitted that assessee had maintained 3 bank accounts as under:....
X X X X Extracts X X X X
X X X X Extracts X X X X
....0 January 72000 100000 February 124000 450000 March 480000 985000 9. The ld AR also furnished the peak credit workings taking into account the entire cash withdrawals and cash deposits of all the bank accounts in pages 85-87 of the paper book. From the said peak chart enclosed in pages 85-87 of the paper book, the ld AR was trying to establish that there was no negative cash balance at all on any day during the year which goes to prove that cash deposits made in the bank accounts are duly sourced out of cash withdrawals. The ld AR prayed for one more opportunity to be given to the assessee before the ld AO for verification of the said peak credit workings enclosed in pages 85-87 of....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... of average net profit ratio of 2.90%:- S. No. A.Y. Turnover G.P. GP Rate N.P. NP Rate 1. 2018-19 2,40,75,272/- - - 6,74,108/- 2.8% 2. 2019-20 2,73,84,652/- 1,04,56,713/- 38.18% 8,79,137/- 3.21% 3. 2020-21 3,59,87,441/- 1,28,52,885/- 35.71% 9,70,249/- 2.7% Average NP Rate for 3 years (2.8+3.21+2.7)/3) 2.90% 13. The ld AR also submitted that in the past, the turnover was less and no accounts were maintained and there was no audit. Whereas in the current year, accounts were audited and their turnover had also substantially increased. Hence, placing reliance on the past trend ....