9911796707
TMI Blog2014 (1) TMI 642X X X X Extracts X X X X X X X X Extracts X X X X ..... profit of Rs.11,98,530/- from the contract receipts of Rs.6,91,09,659/-. The AO estimated net profit at the rate of 8% of total receipts after rejecting the books of account of the assessee on the basis of defects pointed out in the assessment order. Accordingly, income has been computed at Rs.44,94,691/- after allowing interest and salary paid to the partners. The assessee challenged the rejection of books of account and estimation of profits by applying the profit rate of 8% before the ld. CIT(A). The written submission of the assessee is incorporated in the appellate order in which the assessee briefly explained that the AO has noted that few of the purchases made on challans or bills are not printed or the parties are not registered wi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , deleted the substantial addition and allowed the appeal of the assessee partly. The findings of the ld. CIT(A) in para 4 & 5 of the appellate order are reproduced as under :- "4. Appellant's submissions alongwith assessment order have been considered carefully. Assessment records have also been perused. The appellant is a contractor & engaged in road construction business. To earn contractual receipts of Rs.6,91,09,659/-, the appellant has made material purchases of Rs.3,76,55,904/-. A.O. has rejected audited books of accounts of the appellant mainly for non production of bills or production of kachha bills for purchase of grit on various dates. Total grit purchased during the year under consideration is Rs.1,04,70,706/- out of which A.O ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... en confirmed as above. Accordingly, computation of appellant's business income at Rs.55,28,772/- made on the basis of net profit @ 8% on total receipts of Rs.6,91,09,659/- is, hereby, cancelled. Appellant's taxable income is assessed at Rs.13,98,530/- accordingly in view of confirmation of disallowance of expenses at Rs.2,00,000/- 5. In the result, the appeal is partly allowed." 3. The ld. DR relied upon the order of the AO and admitted that the AO in the assessment order has given the details of discrepancies where either no bills were produced or only kachcha bills have been produced, but the total of the discrepancies comes to Rs.4,65,726/-, as noted by the ld. CIT(A) in the appellate order. On the other hand, the ld. Counsel for the a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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