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2011 (11) TMI 626 - AT - Income TaxAddition on account of net profit rate of 8% to the gross receipts -apply the net profit @ 8% on net receipt after reduction of cost of material ad other charges deducted - Held that:- Cost of material reimbursed cannot be a part of the contract receipt which has rightly been deducted by the ld. CIT(A) and therefore, we find no error in his order. Separate addition u/s. 40(a)(ia) - Held that:- Disallowance made under section 40(a)(ia) of the Act is independent of any other provisions of the Act.The turnover of the total sales, gross receipts or turnover from the business or profession is less than the monitory limit as provided under section 44AB is without any material on record in the preceding Assessment Year. Nothing has been placed by the assessee in the Paper Book containing 85 pages. Further, the remand report has also not confirmed total sales, gross receipts or turnover to be below the monitory limit specified under section 44AB of the Act in the preceding year. Therefore, in the circumstances and the facts of the case, the ld. CIT(A) is not justified in deleting the addition made by the Assessing Officer. Unexplained opening balance of the assessee’s capital - Held that:- This is the first year of the assessee and, therefore it was argued that there is no possibility of any income and which cannot be introduced as opening capital which of course submitted by the ld. Authorised Representative in his submission dated 16.06.2009 is out of the Savings Bank Account of the assessee maintained with ICICI Bank, Sanjay Place as at 01.04.2005. The bank account number is 628701501674. Addition to be deleted. Addition on account of investment in Car and scooter - Held that:- As submitted that the car has been purchased from the borrowed fund from ICICI Bank, Agra and the copy of loan account was submitted and the scooter was introduced in business as capital contribution by the proprietor at its cost price which was taken on loan and an installment of ₹ 3010/- per month was being paid to repay the loan on scooter. Therefore, in the circumstances and facts of the case, we find no error in the order of the ld. CIT(A) who has rightly deleted the addition made by the A.O.
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