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2015 (3) TMI 1179 - AT - Income TaxRejection of books of accounts - estimation of net profit - Held that:- As already noted that assessee did not file even the return unless the same was detected during search made in the case of M/s Talwar Group. Anyway the most relevant factor in the case before us was that assessee is engaged in the business of construction of house for private parties. It is a common knowledge that rate of profit in construction of a private houses is much higher than in comparison to the mass construction contracts for government or other government authorities. This is so because the construction of a private house involves superior quality of work, fancy items for which generally the contractor charges higher rate of margin. Further, it is to be noted that assessee had huge amount of sundry creditors amounting to ₹ 75,69,505/- for which no confirmation has been filed. Even the names of the sundry debtors are not disclosed in the balance sheet. Normally, the Chandigarh Bench of the Tribunal has estimated the rate of profit in the case of construction firms at 8%. But considering the above facts, we are of the opinion that estimate of profit at the rate of 9% would meet the ends of justice in this case and, therefore, we set aside the order of Ld. CIT(A) and estimate the net profit at 9%.
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