9911796707
TMI Blog2012 (7) TMI 208X X X X Extracts X X X X X X X X Extracts X X X X ..... ts of the case are that the assessee is engaged in civil construction work. Return was filed on 29.9.2010 at an income of Rs. 17,04,329/-. The case was selected for scrutiny. A notice u/s 143(2) was issued to assessee alongwith questionnaire. As per A.O., the assessee did not produce books of account nor furnished the details called for, accordingly, assessment was framed u/s 144. The Assessing Officer while finalizing the assessment has noted that the assessee claims to derive income from contractor ship business. However, no proof of having done any contract work was submitted by the assessee. The assessee has not maintained regular and proper books of account and no tax audit was got done by him. The assessee has not produced any detail ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee has submitted evidences only in appellate proceedings and deliberately avoided the submission of the same during scrutiny proceedings to prevent the Assessing Officer from conducting any investigation. The Assessing Officer reiterated that sufficient opportunity was given to the assessee to present his case. The Assessing Officer mentioned that to avoid the assessment proceedings the assessee pretended to be ill and the illness of the assessee was informed on 20.12.2010 when the assessment proceedings were coming to an end. Therefore, the Assessing Officer proceeded to assess the entire contract receipt of Rs. 3,40,86,575/- as the income of the assessee for the relevant assessment year. (2008-09). 5. By considering the remand report and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rs. 3,40,86,575/- was offered as income based on the bid made by the appellant for contract work and the nature of work carried out by him for these three above mentioned companies. I find force in the appellant's submission that entire contract receipts could not be treated as income and income would be assessed only to the extent of estimated profits embedded in the gross contract receipts. For this proposition, I rely on the decisions of the Hon'ble Jurisdictional MP High Court in the case of CIT vs. Balchand Ajitkumar, 263 ITR 610, and the Hon'ble Gujarat High Court in the case of CIT vs. Premier Industries, 258 ITR 654, wherein it was held that total sales cannot be regarded as the profit income of the assessee but addition could be m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e above order of CIT(A), both the assessee and Revenue are in further appeal before us. 7. We have considered the rival submissions and found from record that the assessee was engaged in civil construction work. On the contract receipts of Rs. 3.40 crores, the assessee has declared 5 % net profit, the Assessing Officer treated entire contract receipts as assessee's income on the plea of non production of books of account and details called for. The CIT(A) called the remand report from Assessing Officer and after considering the nature of assessee's work and the provisions of Section 44AB, the ld. CIT(A) upheld the addition by applying 10 % net profit rate on the contract receipts. There is no dispute to the findings recorded by the ld.CIT( ..... X X X X Extracts X X X X X X X X Extracts X X X X
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