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2011 (9) TMI 600 - AT - Income TaxService of Notice 143(2) - Held - When the facts shows that the notice dated 28.09.2007 has been validly posted and the presumption of its service has not been rebutted by any cogent evidence. Thus held that the notice has been duly served on the assessee. Rejection of books of accounts - execution of works contract - the case of the assessee is that the books are audited and a regular system of accounting has been followed, which has been accepted in past. On revenue account, the AO has pointed out only minor discrepancies in respect of purchase of lubricant and tyres. In fact, these are not discrepancies but only doubts raised by the AO. In such a situation, the books could not have been rejected. - held that:- these submissions are in conformity with the provision contained in section 44BBB(2). Thus, the assessee can claim that the profit ought to be assessed on the basis of the books and presumptive rate of 10% is not applicable to this case. Accounting of Revenue as per AS-7 - held that:- the AO has doubted the estimate of cost made initially. However, such estimation has been accepted in past and it forms the basis of assessment for three preceding years. Therefore, any change in this estimation would lead to disturbing past assessments which have been accepted. - AO could not have rejected the books of account and taken recourse to the provision contained in section 44BBB for estimating the income, especially when the provision is not applicable to the case of the assessee.
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