TMI Blog2013 (10) TMI 920X X X X Extracts X X X X X X X X Extracts X X X X ..... rify certain expenditure, which are claimed at an amount higher than the preceding years - Such directions in absence of any conclusive finding would not have a bearing on the case for A.Y. 2009-10 - rejection of books of account u/s 145(3) of the Act is not justified - the entire addition id deleted – decided in favour of assesse. - ITA No. 391/Jodh/2013, C.O. No. 25/Jodh/2013 - - - Dated:- 25-9-2013 - Shri Hari Om Maratha And Shri N. K. Saini,JJ. For the Petitioner : Shri Sandeep Jhanwar For the Respondent : Shri N. A. Joshi, DR. ORDER Per Hari Om Maratha, JM:- This appeal by the revenue and Cross Objections by the assessee are directed against the order of ld. CIT(A), Udaipur dated 28/03/2013. 2. The only ground raised by the revenue in its appeal and the first ground in the assessee's cross objection are regarding trading addition of Rs. 77,42,186/- made by the A.O. and relief of Rs. 49,60,233/- allowed by the ld. CIT(A). 3. The brief facts relating to this issue are that that the assessee is engaged in the business of contractorship and taking up the projects of road construction. During the year under consideration total receipts of the contract busin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt order for the AY 2008-09 was set aside u/s 263 of the Act and further net profit rate of 9% has been applied in AY 2008-09 vide order u/s 143(3)/263 of the Act. He also submitted that the ld. CIT(A) has also not considered the fact that assessee himself has declared a net profit rate of 5.81% in the AY 2007-08. He therefore submitted that the relief has been wrongly allowed and the order of the A.O. should be upheld by reversing the relief allowed by CIT(A). 6. Per contra, the ld. A.R. challenged the very basis of rejecting the books of account by the assessing officer as well as its upholding by the ld. CIT(A). He discarded the findings given by ld. CIT(A) for upholding the rejection of books of accounts which were against the facts of the case. According to him, ld. CIT(A) mentioned that the assessee did not produce the books of accounts and vouchers/bills for expenses claimed in the profit loss account, which is not correct, as it can be found from the second para of the assessment order, wherein the assessing officer has taken a note of examination of books of accounts consisting of cash book, ledger, wage sheets and vouchers. The objection of A.O. was only in respec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... k or work in progress in any of the contracts carried on by the assessee. He further pointed out that the accounts of the assessee are subject to audit u/s 44AB of the Act and after verification of entire records including all the books of accounts viz. cash book, ledger, journal and the supporting evidences in form of vouchers for all the expenses, the wages sheet and other documentary evidences on the record, the auditor has given a statement that assessee's books of accounts give a true and fair view of the profits of the assessee for the year ended on 31.03.2008. The ld. AR has also submitted that the auditor is an expert in his field and examined all the related documents at the place of the auditee as against the summary examination by the A.O. of the information submitted during the course of assessment proceedings. Therefore, in view of the ld. AR the opinion given by the auditor should prevail in absence of any specific defect/discrepancy found in books of accounts/procedure adopted by the auditor for examining the books of accounts and documents and resultant profit/loss and also the affairs of the business. The Ld. AR also pointed out that the basis of application of gro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ll. He accordingly prayed for deletion of the entire addition. 7. We have heard the rival parties and perused the material on record, we find that the reason given by the ld. CIT(A) for upholding the rejection of books of accounts u/s 145(3) of the Act is not justified as the assessment order itself mentions that the assessee produced all the books of account along with supporting vouchers. We also find that the ld. AO had not pointed out any specific defects in the books of accounts or vouchers maintained by the assessee on day to day basis in regular course of business. The remarks given by the A.O. are neither sufficient for rejecting the duly audited books of account nor the AO has shown that how these remarks would have a bearing in giving a finding that true income cannot be computed on the basis of books of accounts maintained by assessee on day to day basis in regular course of business. However, the AO has also not considered these defects at time of taking the basis of estimation of income of the assessee. The auditor of the assessee has specifically stated in his statutory audit report in form 3CB u/s 44AB of the Act that the profit and loss account gives a true and fa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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