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2022 (1) TMI 880 - AT - Income TaxEstimation of business income - Estimating the profit rate of 7.5% on the total contract value - AO noted that the gross receipts as per Form No. 26AS with respect to the contract work of Billpower Limited as shown more than gross receipts credited in the profit and loss account of the assessee - HELD THAT:- Assessee has submitted details before the lower authorities i.e. CIT (Appeals), the statement showing reconciliation was also before the learned CIT (A) and before AO during the remand proceedings. The reconciliation submitted by the assessee, as evident that no further clarification is required there from. There is no allegation that the books of accounts of the assessee do not comply with the respective accounting standards which has a mandate of law in view of the Provisions of section 211 of the Companies Act. As the complete details were filed before the learned CIT (A) and where the annual accounts for two years filed before him clearly shows the higher income offered by the assessee from the impugned contract, we do not find any reason to set aside this issue back to the file of the learned Assessing Officer. Furthermore, the appeal before the learned CIT (A) is also a continuation of assessment proceedings only. The learned CIT (A) confirmed addition merely harping on non-compliance by assessee before the Assessing Officer and not applying his mind to the merits of the addition, such order is also not in accordance with the law. If the assessee is non-compliant before Assessing Officer that could not be the reason to brush aside the merits of the case and confirm addition in the hands of the assessee when complete details are available before the Commissioner of Income Tax (Appeals) - we direct to delete the addition - Decided in favour of assessee.
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