TMI Blog2013 (10) TMI 1230X X X X Extracts X X X X X X X X Extracts X X X X ..... ter restored to the Commissioner(Appeals) – Decided in favor of Assessee. - Tax Case (Appeal) Nos.679 and 680 of 2013 and M. P. No. 1 of 2013 and M. P. Nos. 1 and 2 of 2013 - - - Dated:- 1-10-2013 - Chitra Venkataraman And T. S. Sivagnanam,JJ. For the Appellant : Mr. Nithiyaesh Natraj in both the appeals For the Respondent : Mr. J. Narayanasamy in both the appeals Standing counsel for Income Tax Department JUDGMENT (The Judgment of the Court was made by Chitra Venkataraman, J.) The assessee is on appeal as against the order of the Income Tax Appellate Tribunal dated 06.09.2012 in ITA No.370/Mds/2011 and ITA No.370/Mds/2011 relating to the assessment years 2006-2007 and 2007-2008 respectively, raising the following ques ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ctor. While computing the income for the assessment year 2006-07 and 2007-2008, the Assessing Officer pointed out that the assessee could produce only the books of accounts and vouchers in respect of bitumen expenses and hand made vouchers in respect of other expenses. When the assessee was asked to produce as to how the work in progress was worked out, it was noticed that the assessee did not show any bills/ receivables in the balance sheet. The assessee could not produce even a reconciliation statement with reference to the contract receipts and the bank account. In the absence of details and there being no proper books of account maintained, the Assessing Officer estimated the income from contract business at 8% on the gross contract rec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ppeal before the Income Tax Appellate Tribunal. 3. A reading of the order of the Income Tax Appellate Tribunal shows that the assessee had pointed out that its turnover for the assessment year 2006-07 did not exceed Rs.40 lakhs to be brought for assessment in presumptive basis under Section 44AD of the Income Tax Act, 1961. However, noting that the assessee had not filed profit and loss account or balance sheet for the years and that the returns and the vouchers produced were defective in nature, the Income Tax Appellate Tribunal confirmed the order of the assessment thereby taking the gross turnover at 8% as the income of the assessee. 4. Aggrieved by this, the present appeals have been preferred by the assessee before this Court. 5. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e defined under clause (a) Explanation and eligible business defined under Clause (b) Explanation, so long as the gross turnover does not exceed Rs.40 lakhs, the income would be assessed at the specified percentage of the gross turnover. There is no denial of the fact, as is evident from the order of assessment that the assessee's gross contract receipt was Rs.4,02,10,611/- for the assessment year 2006-2007 and Rs.5,34,96,995/- for the assessment year 2007-2008, which means, Section 44 AD of the Act has no relevance. 7. As far as this case is concerned, it is a matter of record and it is not disputed by the assessee that it had not filed any profit and loss account or the balance sheet for the assessment years under consideration along wi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r of Income Tax (Appeals) accepted the contention of the assesseee that it was an assessment under Section 44 AD of the Act. 8. Before the Commissioner of Income Tax (Appeals), the assessee submitted that the total income of the assessee was not exceeding 4% at anytime in the preceding year when the turnover was low and that high percent of net profit in the assessment year 2006-07 was not possible when the turnover was high i.e. above Rs.4 Crores. It was further submitted by the assessee that the nature of business was such that they had to face lot of practical difficulties in maintaining the bills and vouchers and considering the quality maintenance in civil work, the assessee had to sacrifice the profit. Thus, taking note of these sub ..... X X X X Extracts X X X X X X X X Extracts X X X X
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