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2012 (5) TMI 752 - ITAT AGRARejection of books of accounts - N.P. determination - Held that:- We confirm the order of CIT(A) in rejecting the books of account of the assessee. After rejecting the books of accounts, the next step to be taken is estimation of profit for the year. The CIT(A) after considering the provisions of section 44AD and past history of the assessee found that the net profit rate of 7% will be reasonable rate. We notice that the assessee himself has shown the different net profit rates in different years i.e. 6.88% in A.Y. 2002-03 & 3.2% in A.Y. 2003-04. The calculation of net profit rate for the year under consideration comes to 5.1%. We find that the CIT(A) has rightly applied the net profit rate of 7% and contrary to that there is no material on record neither the same has been pointed out by any of the parties. Therefore, order of the CIT(A) on the issue is confirmed. Addition u/s 68 - Held that:- Both the creditors have confirmed balance against their names. In respect of Shri Vijay Singh, it was informed and noted by the CIT(A) that he has died but the ld. Representative of the assessee produced the photocopy of accounts before the Assessing Officer and transaction was found genuine. In respect of Shri Jawahar Mishra & Shri Ashutosh Tripathi, the amount was through banking channel and the Assessing Officer did not dispute this fact. Thus, in the light of detailed discussions made by the CIT(A), we find that the CIT(A) has rightly deleted the addition made by the Assessing Officer under section 68 of the Act. Order of the CIT(A) is confirmed on the issue. Addition on account of refund of security - Held that:- CIT(A) has rightly deleted the addition as the said amount was security deposit and not against the payment of contract work. There is no error in the order of CIT(A). Therefore, order of the CIT(A) is confirmed on the issue. Thus, ground raised by the Revenue in its appeal is dismissed.
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