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2015 (6) TMI 274 - AT - Income TaxN.P. estimation - Held that:- As in earlier years, the final assessed income of the assessee was in the range of 0.98% to 2.5%. In the subsequent year i.e. assessment year 2011-12, the income of the assessee was assessed at 2.09% on contract receipt of ₹ 1636.39 lac. In the present year, the contract receipt is ₹ 794.07 lac. The decision of the CIT(A) to assess the income of the assessee at ₹ 27 lac results into net profit rate of 3.40% as against 8% estimated by the Assessing Officer. Since in the present year, the assessee has not produced books of account and vouchers related to the expenses, we feel that applying net profit rate of 4% will meet the ends of justice. We direct the Assessing Officer accordingly that the Assessing Officer should assess the income of the assessee by applying 4% rate as the net profit of the gross receipts - Decided partly in favour of assesse. Undisclosed investment in FDRs - Held that:- merit in this stand taken by CIT(A) because it is admitted position of fact that the assessee has FDR investment in this year and the same was undisclosed in the balance sheet. If these FDRs were purchased in earlier year then it was the burden on the assessee to establish that by bringing necessary evidence on record. As per the chart reproduced by CIT(A) on pages 8 to 10 of his order, apart from Sl.No. 15 & 16 also, there are other FDRs which were purchased in the present year i.e. Sl.No. 3 ₹ 3,66,262/-, Sl. No. 6 ₹ 6,66,407/-. Moreover, even if balance FDRs were purchased during the financial year 2008-09 and the same were out of undisclosed sources then also interest on such investment for the present year should be added in assessment year 2009-10 and CIT(A) should have given such direction to the Assessing Officer for making such addition in assessment year 2009-10. The interest accruing in present year on those investments in FDR made in financial year 2008-09 should have been added in present year. Considering these facts, we feel that the order of CIT(A) is not sustainable and the same required a fresh decision in the light of above discussion. Hence, we set aside the order of CIT(A) and restore the matter back to him for fresh decision after providing adequate opportunity of being heard to both the sides - Decided in favour of revenue for statistical purposes. Investment in purchase of FDRs does not relate to the year under appeal - Held that:- this ground of the assessee is also de void of any merit because these two FDR of ₹ 2,73,239/- were made on 29/05/2009 and 21/08/2009 which falls during the present year and since these investments were not reflecting in the balance sheet of the assessee, the addition was rightly upheld by CIT(A). - Decided against assesse.
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