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2019 (11) TMI 706 - AT - Income TaxRejection of books of accounts - Estimation of income - HELD THAT:- It is an admitted fact that assessee did not produce books of account, bills and vouchers before the authorities below and even same are also not produced before the Tribunal. Therefore, rejection of books of account is justified in the matter. The A.O. while estimating income of assessee, has applied net profit rate of 12%. Assessee has filed chart of net profit rate for earlier year as well as subsequent years which shows that in subsequent assessment year assessee has declared 8.134% as net profit rate, however, in A.Y. under appeal, net profit rate is 3.014%. Considering the non-cooperation from the side of the assessee and non-production of the books of account and that assessee declared net profit rate of 8.134% in subsequent assessment year, we are of the view that application of net profit rate of 12% by the authorities below is excessive and unreasonable. Therefore, considering the history of the assessee, we direct the A.O. to apply net profit rate of 8% against the total turnover and made addition accordingly. Unexplained cash credit - The assessee stated that these are the amounts which were received from M/s. Om Track Builders and M/s. Shiv Ram Construction. The assessee also submitted before the Ld. CIT(A) that these amounts were security released from these firms, for which, assessee could not produce any evidence. Therefore, these are not part of the receipts pertaining to the contract business. Therefore, same could not be included in the total turnover for the purpose of application of net profit rate. These are in the nature of unexplained cash credit, which, assessee has not shown to the Revenue Department and has also not explained.Therefore, addition of ₹ 4,50,000/- is maintained. With respect to addition of ₹ 1,06,400/- assessee merely contended that this amount was never received by him. However, A.O. found from Form 26AS downloaded from the system that assessee has received this amount of ₹ 1,06,400/- from M/s. Mukand Engg. Ltd. Assessee has not explained at all as to on what account the amount have been received. Assessee submitted that this amount have not been received by the assessee. Therefore, it is also unexplained credit in nature and authorities below have correctly made the addition of ₹ 1,06,644/-. This ground of appeal of Assessee is dismissed.
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